Halifax ISA Direct Reward extra .2% question

opinions4u

Funding date.

jennifernil

That's what I thought, but my 12 months has now been calculated from account opening date, so over 3 weeks of no interest included in my 12 month reward period.

I have spoken with Halifax today and have the following info as it applies to me...

Account opening ...........24/11/2010
First deposit (Trf in)........16/12/2010
Move to ISA4..................28/02/2011
First interest added.........05/04/2011
2nd deposit (Trf in)......... 08/04/2011
End of Reward period..... 24/11/2011
Maturity of ISA4...............28/02/2012
Next interest date.............05/04/2012

So neither the 0.2% Reward interest nor the interest from April 2011 till maturity will be added till 05/04/2012 IF I transfer to another Halifax ISA. If I do continue with them I will also get the new interest rate from 28/02/2012 till 05/04/2012 on the balance in the account at the time, but this balance will not include the 0.2% interest I have received notification of.

So they have calculated what they consider 12 months Reward interest, but will not add it to my account for another 4+ months.

If however I decide to transfer elsewhere after 28/02/2012, on transfer both the Reward amount and the 3% interest from 05/04/2011 till 28/02/2012 will be added, plus a little at the much lower rate until the transfer takes place.

This calculating but not adding the Reward interest until much later seems a bit mean.

jennifernil

10_66 wrote: »

Does anyone know for sure which date Halifax use as the anniversary date? There are 3 options and I think it's option 1, but am not sure.

Option 1) Date funds are received into account (14 March)
Option 2) Date account opened (5 March)
Option 3) Date transfer form received by Halifax (9 March)

If they do it as they did mine then it will be 5th March.

10_66

jennifernil wrote: »

...So neither the 0.2% Reward interest nor the interest from April 2011 till maturity will be added till 05/04/2012 IF I transfer to another Halifax ISA. If I do continue with them I will also get the new interest rate from 28/02/2012 till 05/04/2012 on the balance in the account at the time, but this balance will not include the 0.2% interest I have received notification of.

So they have calculated what they consider 12 months Reward interest, but will not add it to my account for another 4+ months.

If however I decide to transfer elsewhere after 28/02/2012, on transfer both the Reward amount and the 3% interest from 05/04/2011 till 28/02/2012 will be added, plus a little at the much lower rate until the transfer takes place...

I wish they'd give out consistent information. When I rang a couple of weeks' ago they told me they'd had so many complaints about the way interest was being applied to this account, that they've changed it to paying the interest on the anniversary date so that you're not penalised with a lower rate until 5 April.

AirlieBird

This is what the Halifax website said on 15 February 2011 (emphasis mine)

For new savings accounts, the additional 0.20% AER will apply for 12 months from the date of account opening. For existing qualifying savings accounts, the higher rate will apply for 12 months from the date you sign up for this offer. The additional interest will be calculated and paid together with your standard interest on your next interest payment date following the 12 month reward period. As this additional interest is calculated after 12 months, you will see the standard variable interest rate that applies to your savings account when viewing online.

jennifernil

Yes, correct. But when I opened my account it said the Reward period ran for 12 months from the first deposit, as per the link miller posted further back.

jennifernil

10_66 wrote: »

I wish they'd give out consistent information. When I rang a couple of weeks' ago they told me they'd had so many complaints about the way interest was being applied to this account, that they've changed it to paying the interest on the anniversary date so that you're not penalised with a lower rate until 5 April.

Remember.....you do not have to keep the account with Halifax just to get the interest. Once your 12 months is up you should either switch to a new Halifax ISA, or transfer out to somewhere that pays a better rate.

If you transfer out, all your interest will be added then, it's only if you stay with Halifax that you apparently have to wait till 5th April.

The girl I spoke to said they were paying on 5th April to comply with new HMRC rules. Has anyone heard about new HMRC rules?

opinions4u

jennifernil wrote: »

The girl I spoke to said they were paying on 5th April to comply with new HMRC rules. Has anyone heard about new HMRC rules?

HMRC rules for cash ISA make no reference to the date when interest has to be added.

tipsychick

@jennifernil, see my post #49 above. It will be far quicker.

It's a complete joke. They're obviously making it up as they go along.

I cannot wait to move away from them on 28/2/12. Well, save for £1.

jennifernil

opinions4u wrote: »

HMRC rules for cash ISA make no reference to the date when interest has to be added.

No, quite!