Halifax ISA Direct Reward extra .2% question

talexuser

Yes the standard 3% interest is paid on 5 April, and the extra 0.2 paid on the 12 month anniversary of opening, so wait till the 12 months to get the full whack, or if all is previous years ISAs leave a small amount in till the 12 month and transfer the rest if a good deal is available now. There could be some tempting deals closer to the new ISA year.

Valley_Bluenose

We both have ISA Direct Reward 4 accounts maturing on 2 Mar 12, from when the accounts transfer to ISA Saver Direct at a paltry rate.

Are we best to leave the accounts alone until 3 Mar 12 before transferring? I assume doing so will get us the extra 0.2% but will the account pay the full year's 3% when we close/transfer the account or does it have to run until 5 Apr?

I'm pretty sure we will get all our interest if we let it run to 3 Mar but would appreciate confirmation. Many thanks.

2010

Valley_Bluenose wrote: »

We both have ISA Direct Reward 4 accounts maturing on 2 Mar 12, from when the accounts transfer to ISA Saver Direct at a paltry rate.

Are we best to leave the accounts alone until 3 Mar 12 before transferring? I assume doing so will get us the extra 0.2% but will the account pay the full year's 3% when we close/transfer the account or does it have to run until 5 Apr?

I'm pretty sure we will get all our interest if we let it run to 3 Mar but would appreciate confirmation. Many thanks.

Please read my post #189 and consider this.
It can be redesignated immediately over the phone and you keep the same sort and account number and the interest to date is added at the same time.

Of course it`s up to you whether you want a 2 year fixed or not.

10_66

Valley_Bluenose wrote: »

...I'm pretty sure we will get all our interest if we let it run to 3 Mar but would appreciate confirmation. Many thanks.

I think the general consensus of opinion on this thread is that, as long as you wait until after the anniversary date you should be ok transferring out of this account, any interest due (standard and bonus) being paid on transfer/closure. I can't confirm this for sure though, as my bonus period isn't due just yet and so I haven't had any interest added.

drlabman

Like many others, I've had a letter saying the reward period on my ISA is about to expire, and offering to convert to a 2-year fixed at 3.7%. My expiry date is 09/03/12, but the form to accept the 3.7% needs to be returned by 01/03/12. I'm baffled as to what this means for my extra 0.2%. Does this mean if I convert now, I'll only get 3% from 09/03/11, or 3.2%? I'm baffled.

10_66

drlabman wrote: »

Like many others, I've had a letter saying the reward period on my ISA is about to expire, and offering to convert to a 2-year fixed at 3.7%. My expiry date is 09/03/12, but the form to accept the 3.7% needs to be returned by 01/03/12. I'm baffled as to what this means for my extra 0.2%. Does this mean if I convert now, I'll only get 3% from 09/03/11, or 3.2%? I'm baffled.

This has been discussed at some length on this thread. Most posters are saying that if you convert immediately to the offered 3.70% 2 year fixed you will keep the existing account number and sort code, and that the bonus interest will still be added on the anniversary date of what would have been the Direct Reward ISA. I'm not speaking from personal experience though, just what I've read on this thread.

drlabman

Thanks. I have been following this thread with interest (ha!), but that little nugget (keeping the same account number, and therefore still eligible for the 0.2%) hadn't quite registered with me. Although, you never quite know with the Halifax. That being the case, I may just take the plunge. I don't really like the idea of having to start a separate ISA for 2012/13, but hey ho.

2010

drlabman wrote: »

Thanks. I have been following this thread with interest (ha!), but that little nugget (keeping the same account number, and therefore still eligible for the 0.2%) hadn't quite registered with me. Although, you never quite know with the Halifax. That being the case, I may just take the plunge. I don't really like the idea of having to start a separate ISA for 2012/13, but hey ho.

I tend to take the same view as 10-66.

If you do take the plunge, mention the letter and the 3.7% and insist that they give it to you, despite the rate dropping to 3.5%.

Maybe the cut of 0.2% was done to pay for our Reward bonus. :rotfl:

abarthman

My ISA Direct Reward 4 account has, at last, been re-designated as a ISA Saver 2yr at 3.7%.

I phoned to arrange the redesignation on 17 Feb 12 and the credit on my online banking ISA statement is dated 27 February 2012 (even though it's only the 25 Feb 12 today!)

A credit for £1077.78 has been applied to my ISA balance, but, when trying to figure out if it included the 0.2% Reward or not, I can't figure out their interest calculation.

My dodgy arithmetic:

My ISA balance on 6 April 2011 was £37,451.45, so 3.2% interest would have given me £1198.45 on 5 Apr 2012 (assuming the 0.2% reward carried on till then, but I got the letter confirming that it had come to an end that was dated 17 Jan 2012.

18 February to 5 April is 48 days, so 366 days (leap year) minus 48 days interest is 318 days

318/366 x £1198.45 = £1041.28

Take away 31 days' Reward interest at 0.2% for the period between the reward period ending on 17 Jan 12 and 17 February 12:

0.2% of £37,451.45 x 0.2% = £74.70
31/365 of £74.70 = £6.34
£1041.28 - £6.34 = £1034.94

£1077.78 seems to be about £43 too much by my calculations

Have they given me too much interest? I thought it might relate to the period between me making the phone call on 17 Feb 12 and the credit date of 27 Feb 12, but 10 days' interest on £37,451.45 at 3% interest is £30.70, so that's about a tenner out.

Obviously, I won't ask them for clarification of this apparent overpayment, but, if my dodgy arithmetic is correct, it does seem odd.

Any thoughts or arithmetical corrections would be appreciated.

rb10

abarthman wrote: »

Any thoughts or arithmetical corrections would be appreciated.

5th April 2011 to 27th Feb 2012 is 328 days.

37,451.45 * 0.032 / 365 * 328 = £1,076.96.

Not sure where the bonus 82p comes in.

It looks like you're receiving 3.2% interest right up until Monday - are you sure the letter dated 17th Jan said that the period had already ended, or was due to end soon?