Halifax ISA Direct Reward extra .2% question

jennifernil

Thanks for clearing that up.

The extra 0.2% is not a huge amount, so moving to a 3.7% rather than a 3.2% rate a few months early will largely offset this.

To give a simple example........(calculating very simply and ignoring compounding).......

If you had £10000 in the account, 3.2% over the 12 months is £320.

If you transfer after 9 months, you get 9 months @3% + 3 months @ 3.7% , which is £225 + £92.50 = £317.50.

The possible loss of £2.50 could well be worth it to secure a good rate that may not be around in April.

Only of course if you wish to tie up the funds for 2 years.

Mr_K

Is 'redesignating' to their 2.6% instant access ISA given as an option when the Reward period ends ?

Don't want a fix, not sure it's that good a deal when interest rates are only going to go one way (ie up) in future. 3.1% with Nationwide seems the best instant access at the moment, 2.6% would tide me over for a couple of months until a transfer. Halifax might also offer something better in a couple of months when the ISA season kicks in.

jen245

Re-designation of accounts can be done over the phone, you dont have to go into a branch. They dont close your account, your account details stay the same.

I would have though you could change to the 2.6% account if you want, not sure why you'd want to though, in the run up to April, better deals should become available

Rates arent going to up any time soon, and if they do, it will be a slow process, so I personally think the 3.7% 2 year fix is quite a good deal

2010

I too think 3.7% is a good deal but when the new tax year begins and the providers are looking for "new money", I can`t see why it won`t be available then.
Giving people the chance to fix now for two years is a bit cagey on their part.
Your money is locked in with them well before the new tax year starts and you`re giving up the chance of seeing what`s available, not only from Halifax but also other providers.

I would be quite happy to fix now for 2 years at 3.7% if they would just do it online straightaway and pay all the interest into it as well.
But all this hassle of just transferring (in my case) £5339 and then keeping £1 in the current reward ISA account until the 1st May is all too much hassle for me.

The best thing they have done is to finish this 0.2% gimmick and just pay a straight, clean rate.
If they don`t pay a decent rate when my anniversary is up then I`ll just transfer it to my main cash ISA, which thankfully isn`t with Halifax.
Why all their adviser`s don`t get their facts right is beyond a joke.

jennifernil

As your ISA is only current year, you could not use the "keep it open with £1" trick, as current year's subscriptions must be transferred in full under the ISA rules.

Unless, of course, staying with the same provider but in a different product does not count as a transfer?

2010

jennifernil wrote: »

As your ISA is only current year, you could not use the "keep it open with £1" trick, as current year's subscriptions must be transferred in full under the ISA rules.

Unless, of course, staying with the same provider but in a different product does not count as a transfer?

Who knows

---

certainly not the Halifax. :rotfl:

I`ve decided to let it run it`s course and on 1st May once all the interest is added including the 0.2%, move it elsewhere.

talexuser

I opened the 2 year fix online with the intention of transferring my direct 4 balance (minus £1). When I got to the transfer page it would not let me transfer more than the ISA limit online.

So I phoned and actually got the right advice! My 1 year is on 27th Feb. I asked about the 0.2% and was told to wait till end of Feb to see the interest added online (including the 0.2) and then phone the next day to immediately get transferred to the 2 year fix with the same account number and details.

I asked about the 2 year I just opened with nothing in it and was told to do nothing - the account will close automatically after 4 weeks with no deposit.

jennifernil

I thought you couldn't do a transfer on-line any more? I transferred 15k from ISA 4 to the BOS 2 year fix, and had to print a transfer form to give them.

However that may be because they are now saying BOS and Halifax are now separate.........when it suits them it seems.

Up here in Scotland, even if your account is a Halifax one, when they write to you about it, the letter is headed Bank of Scotland. Very confusing!

talexuser

After I opened the 2 year fix online, both it and my direct 4 ISA were in my accounts list with the transfer buttons available. When I tried a transfer of the majority of my direct 4 I got the message to some effect that the amount was greater than the ISA limit or some such.

So it looks like if you just had this years ISA amount in the direct 4 it would allow a transfer to the 2 year fix (and you could naturally leave £1 in the acount if that was advantageous). At least that's my guess from what I saw.

jennifernil

Ah, the "MAKE A TRANSFER" button? That is just like moving funds between accounts in the usual manner as far as I can see.

On mine if I try to make a transfer from my ISA4 to my fix, it says I can deposit £5340, which is this year's limit, as I have not paid in any new money this year.

I think, for an actual official ISA Transfer you would need a Transfer Form.