Halifax ISA Direct Reward extra .2% question

abarthman

rb10 wrote: »

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?

Hmmm, this is where it becomes unclear.

I've received two letters.

The first letter, dated 17 Jan 12, states:

During the past year, you've earned an extra fixed rate of 0.20% gross/AER on your qualifying variable rate savings account(s) with Bank of Scotland Exclusives.

Now that your 12 month reward period is over, the additional interest, along with your standard interest, will be added to the following account(s) on the next interest payment date

The second letter, dated February 2012, states:

Your Halifax ISA Direct Reward period is coming to an end

On 08/03/2012* the reward period on your Halifax ISA Direct Reward account will come to an end.

So it's not clear to me if the reward period was over on 17 February or would have run till 8 March 2012.

I started the ISA Direct Reward 4 on 7 March 2011, so the 8 March 2012 date makes sense, but why did they send me that letter on 17 January 2012?

When I spoke on the phone about re-designating the ISA, I asked them whether I'd definitely receive the reward amount - £69.90 - and they assured me that I would.

Nine_Lives

Question regarding the extra 0.2%...

(I can't find the T&Cs of when i opened the account)

I will have had it for 12 months at the start of May i think. Do i need to leave it in for a FULL 12 months to get the 0.2% or can i transfer out before this & have received the extra 0.2% for the time that the account was live?

Basically, as i'm hitting 3.2% now ... when "ISA season" hots up at the end of March, if anything beats 3.2% for old money, including fixed rate 1yr (anything fixed over 12 months will be no good to me), then i'll be looking to transfer. If i wait until the 12 months is up, then "ISA season" will be over & the higher rates will likely be slightly reduced, based on previous years.

10_66

K_P83 wrote: »

Question regarding the extra 0.2%...

(I can't find the T&Cs of when i opened the account)

I will have had it for 12 months at the start of May i think. Do i need to leave it in for a FULL 12 months to get the 0.2% or can i transfer out before this & have received the extra 0.2% for the time that the account was live?...

If you close the account before 12 the months' is up you will not receive the 0.20% bonus. The only way around that is to leave £1 in the account, and transfer the rest out. Couple of problems with that. First is, if the money in it is this year's subscription, you can't do this as this year's subscription has to kept in one place. Second is, even if you can do it (ie if money had been transferred in from previous years') then you'll be left with the £1 plus the interest and if you're transferring the rest to an account that doesn't permit additions (ie most fixed rates), then you're stuck with what to do with it. I ended up cutting my losses and went for the National Counties 3.70% 99 day notice account (it's a 3 year account, but you can close/transfer it as long as you give 99 days' notice). My Halifax bonus was due to be paid 15 March and I could've requested no transfer until that date, but decided to waive it to secure the account.

Nine_Lives

Thanks for that.

It's old money. It wouldn't bother me so much having just £1 in there & then possibly transferring the remainder into a fixed ISA ... for the simple fact that in 2013, we're looking to move out, so most of my ISA money is going to get wiped out anyway with a house deposit.

talexuser

My transfer to the 2 year 3.7% was done today. The interest worked out correctly to 3.2% with slightly over £1 extra from Halifax compared to my calculations.

The Halifax service was very good in my case. I opened the 2 year 3.7 fix at the end of Jan (glad I did after it went to 3.5!), tried to transfer online which was not available, rang up and was advised to send in a signed transfer form. When nothing happened for a week, rang again and was told they were waiting till the 28th to action the transfer because that was my 12 month date for the extra 0.2.

Well done Halifax for looking after your customers.

abarthman

abarthman wrote: »

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!)

Got my paperwork though and they messed up the re-designation date, as I thought they would!

My 2 year fixed ISA will run from 27 Feb 12, despite me phoning them on 17 Feb 12 and getting a verbal assurance that it would run from 17 Feb 12 and then again on the 21 Feb 12 and getting the same verbal assurance.

I re-designated my wife's ISA Direct Reward 4 to a 2 year fixed rate ISA during the same phone call on 17 Feb 12 and hers was dealt with properly and her paperwork states that her 2 year fixed rate ISA runs from 17 Feb 12.

Two phone calls to Halifax later (they cut me off after approx 10 minutes during the first call!) and I have been given an assurance that, although they can't now change the commencement date of the 2 year fixed rate ISA back to 17 Feb 12, they will give me this lost period of interest as a credit when the interest becomes due next year. They advised me that this lost interest amounted to just over £33, but I make it just £5.21*.

I asked for something in writing regarding this, so that might make things clearer. I think they forgot to take account of the interest that I was still receiving in their ISA Direct Reward 4 account! They also credited me with £25 for my complaint and £10 to cover the cost telephone calls to make my complaint (I moaned about being cut off!). The £35 has been credited to my current account already.

*

38529.23 * 0.037 / 366 * 10 = £38.90
minus
38529.23 * 0.032 / 366 * 10 = £33.69
= £5.21

Harvey12

I converted my ISA Saver in Jan to 2yr fixed at 3.7%.

I have now discovered that it was set-up as 3.5%, and because the ISA Saver did not run for a full year the interest accrued will not earn interest until Jan 2013.

My branch had told me everything was fine, lucky I persevered, so make sure you have been given the rate you expected..

The mistake in the interest rate is being corrected manually, not sure what kind of systems they have but seems like dark ages, but Halifax refuse to move on the accrued interest.

If I had transferred to another provider the interest accrued would have been added to the ISA total.