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Halifax ISA interest issues
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Hartson_2
Posts: 50 Forumite
I wondered if anyone could shed any light on the following issue, if it happened to them, and whether it is correct.
Last April, I opened a variable ISA with Halifax at a rate of 3% interest, which would have been paid on the anniversary of the account this coming April.
Today I transferred this ISA account (via telephone banking) to the 2 year fixed-rate 3.7% ISA account (thus ending Jan 2014).
The letter I had recently received had stated: "There's no need to wait for your reward period to come to an end - we'll simply transfer your balance, including any interest you've already earned, to your new account and you'll start earning the new higher rate."
I checked this on the telephone, and was told I would actually not receive Apr 2011 - Jan 2012's interest until the 1 year anniversary of this new account (ie, Jan 2013).
Does this seem correct? Was she mistaken, or is this really their policy? The wording of the letter, to me, gave the implication that I would receive the interest with the start of the new account. It also has the impact that I now won't be earning interest on the interest I would otherwise have received this coming April, had I not transferred my account.
Last April, I opened a variable ISA with Halifax at a rate of 3% interest, which would have been paid on the anniversary of the account this coming April.
Today I transferred this ISA account (via telephone banking) to the 2 year fixed-rate 3.7% ISA account (thus ending Jan 2014).
The letter I had recently received had stated: "There's no need to wait for your reward period to come to an end - we'll simply transfer your balance, including any interest you've already earned, to your new account and you'll start earning the new higher rate."
I checked this on the telephone, and was told I would actually not receive Apr 2011 - Jan 2012's interest until the 1 year anniversary of this new account (ie, Jan 2013).
Does this seem correct? Was she mistaken, or is this really their policy? The wording of the letter, to me, gave the implication that I would receive the interest with the start of the new account. It also has the impact that I now won't be earning interest on the interest I would otherwise have received this coming April, had I not transferred my account.
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Comments
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Might be worth checking it on the old online banking tomorrow to see if it's capitalised the interest overnight.
No idea what their official policy would be on this!0 -
Does this seem correct? Was she mistaken, or is this really their policy?
Totally incorrect. And it can't be policy - it's unsustainable.
The letter you have clearly indicates capital + interest will be transferred to the 2 year fix. I (and no doubt many others) will be adding to your complaint if that's not the reality.If you want to test the depth of the water .........don't use both feet !0 -
I would have thought that the "reward period" refers to the extra 0.2% you get for having a current account with £1000 going in every month?
You can switch the ISA to the fixed and immediately get the 3% calculated daily, but to get the extra 0.2% the original account needs to get past the 1 year from opening point.
I asked this on the phone and was advised to keep my reward 4 cash ISA till the interst is paid on the 1 year anniversary to get the full extra 0.2% (check online), then phone on the next day to immediately have the total moved to the 2 year fix at 3.7%.0 -
Totally incorrect. And it can't be policy - it's unsustainable.
The letter you have clearly indicates capital + interest will be transferred to the 2 year fix. I (and no doubt many others) will be adding to your complaint if that's not the reality.
If ever have a chance/time, please could you check your account and if the interest from the year past is there, let me know in a post here? I do not mean to trouble you by doing so, but it would be incredibly useful to know someone else definitely did get the interest so that I can use that in a telephone conversation.0 -
I would have thought that the "reward period" refers to the extra 0.2% you get for having a current account with £1000 going in every month?
You can switch the ISA to the fixed and immediately get the 3% calculated daily, but to get the extra 0.2% the original account needs to get past the 1 year from opening point.
I asked this on the phone and was advised to keep my reward 4 cash ISA till the interst is paid on the 1 year anniversary to get the full extra 0.2% (check online), then phone on the next day to immediately have the total moved to the 2 year fix at 3.7%.
I was told the reward period was the bonus of 2.9% for 12 months above a lower underlying rate of 0.1% after that period finished. The extra 0.2% on top of that was for those with a qualifying current account, which I do not have.0 -
If ever have a chance/time, please could you check your account and if the interest from the year past is there, let me know in a post here?
It's going to be a couple of weeks - as I just posted the instructions to Halifax (self + wife) earlier today. But it's absolutely clear that will happen on the letter you received - so don't worry about it.
Misinformation from Halifax employees - indeed 'Callcentre UK PLC' - is rampant I'm afraid. The letter you have is better certainty.
I've rarely used Halifax variable ISAs (they've always been fixed rate for maximum period) .... but whenever I have and have migrated them into fixed rate - the interest is always calculated at the migration point.If you want to test the depth of the water .........don't use both feet !0 -
I would have thought that the "reward period" refers to the extra 0.2% you get for having a current account with £1000 going in every month?
I think the OP has the same ISA Direct Reward that I have. In which case the 'Reward' applies to the account rather than the optional 0.2% from having a qualifying current account.
Nice thought though ..... I'd forgotten the 0.2%!If you want to test the depth of the water .........don't use both feet !0 -
Another example of poor information being shared.I was told the reward period was the bonus of 2.9% for 12 months above a lower underlying rate of 0.1% after that period finished. .
The rate is 3%. There is no bonus. The rate of 3% (which is variable) ends after a year.
When the account was opened, we were told the funds moved to an ISA Saver Direct account after a year. Paying 0.5%.
My guess is that the rate will still drop to 0.5%, but the product name will be different.0 -
It's going to be a couple of weeks - as I just posted the instructions to Halifax (self + wife) earlier today. But it's absolutely clear that will happen on the letter you received - so don't worry about it.
Misinformation from Halifax employees - indeed 'Callcentre UK PLC' - is rampant I'm afraid. The letter you have is better certainty.
I've rarely used Halifax variable ISAs (they've always been fixed rate for maximum period) .... but whenever I have and have migrated them into fixed rate - the interest is always calculated at the migration point.
You were correct. It has changed today, and my interest had been credited to my account! Wahey!0 -
. This discussion has been closed.
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