Halifax ISA Direct Reward extra .2% question

10_66

Re my post #17, I mentioned that I'd sent a letter to Halifax asking to clarify when the bonus would actually get added to the account. All they've managed to do is to complicate things further by advising me of the incorrect interest rate! I didn't even ask them what interest rate I'd receive, as I know when I opened the account it was 3% with a bonus of 0.20%. Their letter of "clarification" tells me that I'll be getting interest of 2.80% with a bonus of 0.20%!! Even my online statement shows 3% (which I know is the standard rate without the bonus as they don't show that). If it's of any help, below are the contents of their letter (it didn't help me!). I've now sent another letter to them asking why they've quoted the wrong interest rate. And what do they mean by a "manual transaction"? Are we supposed to ring and request it? If it's a manual transaction, how is it brought to their attention that it requires action?
Flippin' heck!! If we get the correct interest paid out on this blasted ISA, it'll be a miracle.

Dear

I refer to the above Direct Reward ISA, which has been on this product since 14th March 2011. (Not sure what this sentance is supposed to mean)

I can confirm that you will receive 2.80% on 5th March 2011 (I think they might mean 2012), and the following eight days interest (from 6th March 2012 to 14th March 2012) will accrue to the following tax year.

The 0.20% interest bonus will be received within 14 days of your ISA maturing. This is a manual transaction which is applied as a separate adjustment.

I trust this is satisfactory. (Duh! No!).

Yours sincerely

Customer Services

opinions4u

10_66 wrote: »

I refer to the above Direct Reward ISA, which has been on this product since 14th March 2011. (Not sure what this sentance is supposed to mean)

I assume this was when it became the 3.0% product ISA DIrect Reward 4.

I can confirm that you will receive 2.80% on 5th March 2011 (I think they might mean 2012), and the following eight days interest (from 6th March 2012 to 14th March 2012) will accrue to the following tax year.

This is shockingly worded. The interest will accrue in the current tax year but be capitalised in the following tax year. Although the dates are wide open to confusion.

The 0.20% interest bonus will be received within 14 days of your ISA maturing. This is a manual transaction which is applied as a separate adjustment.

A "manual" transaction means that it requires human intervention and calculation rather than having a computer doing the hard work. So a printout or other form of prompt would trigger the work and some chap with an abacus (or Excel spreadsheet) will work out your 0.2%.

I actually thought they'd automated this process a year or so ago. I can only assume that the joyous move on to the Lloyds TSB platform has undone that.

It's a horribly worded, inaccurate and inarticulate letter.

I'd be miffed.

10_66

opinions4u wrote: »

...I assume this was when it became the 3.0% product ISA DIrect Reward 4...

I opened my account on 5th March 2011, and the screen prints I took at the time show 3% plus 0.20% wef 27 February 2011, so I'm rather concerned now by their letter. I see Halifax is going to be added to my never ending list of ISA providers that I won't use again. I'm running out of ones I can use!!

Edit: Have just spoken to Savings team, and read the letter I'd received. The quote I got from the person I was speaking to was "God knows why they said that, it's unbelievable". Too right!! Anyway, I've now been told another version (hmm). ALL interest will be added to the account wef 5 March 2012 (my anniversary date of opening the account. Apparently, Halifax have had so many complaints from people saying that having to wait until 5 April to receive their interest (when the interest rate will have dropped), that they've changed the way they're paying the interest. I'll still be amazed if the interest paid is correct.

jennifernil

There was this thread last month.......

https://forums.moneysavingexpert.com/discussion/3544851

but I am still confused, having been given several different accounts of how it will work by Halifax themselves, including being told that a new 12 month REWARD period also stated when I changed to ISA 4.

So......I may wish to transfer out to another provider when my year with ISA 4 ends in early March. Presumably Halifax will then add all my interest @3% since last April 5th, plus my extra 0.2% for whatever period they fancy!?

If however I stay with Halifax, but transfer to a different ISA (as I would not want to leave my money earning only 1% or whatever), what happens then?

10_66

jennifernil wrote: »

...If however I stay with Halifax, but transfer to a different ISA (as I would not want to leave my money earning only 1% or whatever), what happens then?

Going on what I was told today by Halifax, the interest should be added to the account on it's anniversary, so if you wanted to transfer it to another Halifax ISA, you should be able to do so straight after the 12 month period. However, that's what they said today, ask 'em tomorrow, and it'll probably be a different story. I think it's just going to have to be a case of waiting until the anniversary date to see what actually happens. This is not good enough though, and I certainly wouldn't entertain having another account like this, where the bonus payment is so complicated that their staff don't even know how it works.

mrsp80

Out of interest, since the 2011 ISA allows transfers in, how come you didn't port your 2010 ISA into that one, with the slightly better interest rate?

10_66

mrsp80 wrote: »

Out of interest, since the 2011 ISA allows transfers in, how come you didn't port your 2010 ISA into that one, with the slightly better interest rate?

Not sure what you mean. My ISA Direct Reward was for previous years' ISAs that I transferred in from elsewhere in March 2011. I have a different ISA for this tax year that pays a better rate of interest (and isn't so bl**dy complicated).

tipsychick

Personally I'd now send a formal letter of complaint, enclosing a copy of your original letter and their woeful reply, to their Complaints Dept. The address is:

Halifax
PO Box 548
Leeds
LS1 1WU

Make it clear that you want a response in writing and not by telephone.

You've given them ample opportunity to furnish you with what should be readily available information and they've been unable to do so to date. Therefore, someone now needs to investigate properly and provide the answers to you in writing.

I would also be suggesting compensation is in order and don't be shy about rejecting their initial offer if it is inadequate.

As I sense a complaint developing, I take note of my out of pocket expenses (telephone calls to 0845/0870 numbers, first class stamps, etc.) and the time I've spent on the matter, both on the phone and writing letters, which I then bill at between £10-20 p/h depending on the complexity of the matter. They should offer a gesture of goodwill for the inconvenience on top too.

In fact I'd suggest everyone who is failing to get any joy on this issue does the same.

jennifernil

I am just hoping I don't need to make a withdrawal before I get my interest added, as right now it would be fairly easy to check if they add the right amount!

10_66

tipsychick wrote: »

...You've given them ample opportunity to furnish you with what should be readily available information and they've been unable to do so to date. Therefore, someone now needs to investigate properly and provide the answers to you in writing...

You're absolutley right that the information should be readily available. It's quite ridiculous that no one seems to be able to get consistant answers to what is really a very simple question. Absurd!! I hadn't thought about registering a complaint about the less than adequate letter I received (you'd think most members of staff would be able to cobble together a half decent letter, wouldn't you?). Maybe Halifax (and to be honest, most of the rest of them!), hope that you'll lose the will to live with exhausting you with their numerous variations on a theme!!