Halifax ISA Direct Reward extra .2% question

tipsychick

Eponym wrote: »

I got a letter from Halifax yesterday saying that my extra 0.2% interest on my 'qualifying variable rate savings account(s)' will be paid on my 'next usual interest payment date'. They didn't specify which account (I have the Reward ISA 4 and the Web Saver Reward) so I had to check it from the account number and sort code provided.

I am a bit confused though. I initally opened the Reward ISA 3 this time last year but due to major !!!!-ups from C&G, who were transferring the funds, the account wasn't actually funded until the end of December last year. Then I transferred over the the Reward ISA 4 (the 3.2% rate) when that came out earlier this year.

Halifax seem to be going by the date I first opened my initial ISA with them, which is good in a way but does confuse me a bit! I am now not sure if my 12 month period for the ISA is truly up or if they've made an error! If the reward period is up, does that mean the rate now drops to 1%?

The 3% rate on your ISA Rewards 4 won't expire until the 12 months is up, which will be the anniversary of the date you transferred from the ISA Rewards 3 to 4 earlier this year I'd have thought, i.e. some time in early 2012 for you. At this point the 3% standard rate of interest will drop to 1%.

The letter you've received sounds like mine. It just refers to the 0.2% bonus interest. It's the 12 months on this that is now up and I think it will relate to the date you opened the ISA Rewards 3 in Sept 2010, rather than when it was funded in Dec 2010. My letter did give the exact amount of interest due though, so not sure why yours didn't specify this.

When you transferred from 3 to 4 earlier in the year, another 0.2% bonus period should have started, which will run for a year too. I think the end date for the standard 3% interest on the ISA Rewards 4 and this 0.2% bonus interest will be the same date for most of us and is from Feb 2012 onwards.

I would definitely check the above with the Halifax though, as I may well be wrong and you'll have no comeback if you haven't verified it direct with them. I only really followed the discussions on here when I was upgrading from one Rewards account to another (1, 2, 3 and 4) or around the time I registered for the extra 0.2% in Sept 2010 and Feb 2011.

That sounds as clear as mud reading it back! Halifax's fault really for trying to retain business by offering a complicated add-on in the form of a 0.2% bonus (twice!) Now they're moving ever closer to Lloyds, I'm guessing there won't be a repeat, as this is all a bit messy and complicated for them.

10_66

I've just calculated that if I left this stupid ISA in the "ISA Saver Direct" (the account it reverts to after the 12 months) from March 2012 (anniversay date) to 5 April 2012, the amount of interest lost due to the rate dropping from 3% to 1% is more or less the same as the whole year's bonus at 0.20% . I can't wait for a reply to the letter I sent asking for clarification (anyone taking bets on my not getting a reply?).

SG27

I received a letter from Halifax yesterday saying that because I have a qualifying current and savings account with them that I will receive 0.2% extra on my savings as long as at least £1000 I paid into my current account.

Which I thought was great except that I closed my Halifax current account over two years ago!! Morons! Hopefully they will still credit the .2%?

10_66

SG27 wrote: »

...Hopefully they will still credit the .2%?

I hope you do still get it . I think they make the rules up as they go along!

Eponym

tipsychick wrote: »

The 3% rate on your ISA Rewards 4 won't expire until the 12 months is up, which will be the anniversary of the date you transferred from the ISA Rewards 3 to 4 earlier this year I'd have thought, i.e. some time in early 2012 for you. At this point the 3% standard rate of interest will drop to 1%.

The letter you've received sounds like mine. It just refers to the 0.2% bonus interest. It's the 12 months on this that is now up and I think it will relate to the date you opened the ISA Rewards 3 in Sept 2010, rather than when it was funded in Dec 2010. My letter did give the exact amount of interest due though, so not sure why yours didn't specify this.

When you transferred from 3 to 4 earlier in the year, another 0.2% bonus period should have started, which will run for a year too. I think the end date for the standard 3% interest on the ISA Rewards 4 and this 0.2% bonus interest will be the same date for most of us and is from Feb 2012 onwards.

I would definitely check the above with the Halifax though, as I may well be wrong and you'll have no comeback if you haven't verified it direct with them. I only really followed the discussions on here when I was upgrading from one Rewards account to another (1, 2, 3 and 4) or around the time I registered for the extra 0.2% in Sept 2010 and Feb 2011.

That sounds as clear as mud reading it back! Halifax's fault really for trying to retain business by offering a complicated add-on in the form of a 0.2% bonus (twice!) Now they're moving ever closer to Lloyds, I'm guessing there won't be a repeat, as this is all a bit messy and complicated for them.

Thanks for the reply. I rang them today (before I even saw your reply actually) and you're right! When I transferred to the Direct Reward 4 it started a new 12 month period which expires 2nd March 2012 and assuming I have kept the current account open and kept within the T&Cs I will get the 3.2% then. The man I spoke to said it sounded like the letter I received was an error based on the original opening date for the first ISA and confirmed my reward rate lasts until March.

Not that it really matters but my letter did give the exact amount of interest - perhaps I didn't word that very well!

10_66

Eponym wrote: »

...When I transferred to the Direct Reward 4 it started a new 12 month period which expires 2nd March 2012 and assuming I have kept the current account open and kept within the T&Cs I will get the 3.2% then...

Did he say the interest will actually get added to the account on the 2 March 2012, please?

Eponym

10_66 wrote: »

Did he say the interest will actually get added to the account on the 2 March 2012, please?

I'm not 100% but I think so. If it's an issue for you I would ring them to check because I can't remember for certain.

tipsychick

10_66 wrote: »

Did he say the interest will actually get added to the account on the 2 March 2012, please?

According to their own t&cs, the 3% part at least won't be added until the annual statement in April 2012, or on account closure.

It would be really nice if they add the 0.2% separately on the 12 month anniversary, which I think for most of us will be on the anniversary of when we switched from the ISA Rewards 3 to 4, so some time in late Feb/March 2012. Then we can just close the account, collecting the remaining 3% without the rate dropping to 1% and before the ISA season is in full swing.

One of the reasons I want a breakdown of how they've calculated the 0.2% bonus interest is to ensure they've recognized I've fulfilled the Rewards conditions each month.

Can you imagine how complicated it's going to be to calculate the bonus interest over an 18 month or so period on a varying balance, if you haven't transferred the £1K through some months?

DragonQ

I was told the following on the phone today:

- The base interest (3% for ISA Direct Reward 4) is paid on 05/04/2012.
- The reward interest (0.2%) is paid on the 12 month anniversary of the ISA being opened (NOT the anniversary of the corresponding Reward Current Account being opened).

Since I upgraded to ISA Direct Reward 4 on 05/04/2011, I'll be getting both payments on the same day.

akahattie

I am having a lot of problems with my Halifax ISA which I transferred in (from Santander) in February 2011. I wanted the 4 year 4.25% rate (seen here on Martin's tips!).

They failed to set up the ISA correctly so I have been on an ordinary 2.8% rate. When I alerted them, the branch was full of "goodness me, yes you're right we'll fix it" words and nice smiles and "we want you to be happy", but I am still waiting. They are offering to put an adjustment inot my account in October 2012 (20 months since they got it wrong) and can't see why I don't think that is acceptable!

I am keeping everything and noting down how much time I am spending on this. No offer of compensation at all!