Halifax ISA interest issues

opinions4u

1. It's the same account, just with amended T&Cs to fix it.

2. Correct. You could open another cash ISA with Halifax or elsewhere for 2012/13.

3. Ask them - confusion reigns over when you'll see the 0.2%!

Mikeyorks

pfpf wrote: »

1. i always thought you could only fund one ISA per year? how can Halifax be offering to transfer all the funds to the new product now? letter states "simply return form by 01/03/2012.

2. it also states no more funds can be added to the ISA once its open, does that mean OH's 2012/2013 allowance will have to find a new home?

3. my understanding is that the 0.2% extra is payable on the anniversary i.e 30/03. does she lose this if she changes now? which takes me back to the fact i thought you couldnt fund another ISA in the same year.

1. You're not 'funding' it .... you're just transferring to a different product. No 'new money' is changing hands. You're just moving the capital + interest to date. This is an internal transfer -- but it would be the same if you'd decided to move the ISA externally to elsewhere?

2. Yes. The ISA Direct Reward (?) was a variable rate and you could add to it each year. But on such ISAs the rate dips dramatically (to 0.5% in this case). So you move it to a better rate elsewhere - or pick up the offer of this fixed rate product? But - all Halifax fixed rates only allow the single deposit. So - if you choose this option - you will finish with several ISAs (as most of us ). If the rate is still available 6th April you can open a further fixed rate ISA with the 12-13 allowance. (NB But only if you're contributing a lump sum. If you contribute regular payments you must stick to variable - otherwise you've tied up your whole allowance on the initial deposit. As you can only contribute (new money) to the one ISA per tax year)

3. The move to the 3.7% Fixed rate is purely a redesignation of the ISA. You essentially keep the same account. So the extra 0.2% should be paid on the anniversary. But - the interest of 3% will be added (pro-rata) at the point of redesignation. In other words - get the document back now if this is the way you wish to go. As otherwise you're passing up the extra 0.7% unnecessarily.

pfpf

both replies, awesome, thank you.

regarding "new money" and opening new ISA's

i was aware that you could only contribute "new funds" to one ISA per year but also assumed that meant only one ISA per year could receive funds of any description.

so in theory i could open ISA in April, fully funded, then transfer it to a new ISA in September then again in January as long as "new funds" only ever hit the 1st one?

thank you.

blueberrypie

pfpf wrote: »

so in theory i could open ISA in April, fully funded, then transfer it to a new ISA in September then again in January as long as "new funds" only ever hit the 1st one?

Yes, pretty much.

In theory you could open an ISA in April, transfer it to another ISA provider in May, another in June, another in July...the only requirement is that you keep the current year's subscriptions together. Previous years' subscriptions can even be split up into various ISAs if you want.

You can also fund an ISA with part of the current year's allowance, then transfer all of that to another ISA and add the rest of the current year's allowance - but it's probably easier to have it all in one place before you transfer it.

Vortigern

It seems from what I've read on here that Halifax are not sending the same maturity letter to everybody.

Mine tells me that the reward period will end in April and interest will drop to 0.5% (it says I will enjoy this!!!)

It doesn't tell me when the standard interest and the reward interest will be added to the account.

It doesn't offer any transfer to a better rate of interest, or to a fixed term account, although it does invite me to send off for details of their other ISAs.

I wonder why they're not trying to retain my business?

2010

Both my partner and I have identical Reward ISA`s with the 0.2% bonus.
Two weeks ago my partner received a letter inviting her to transfer to the 2 year fixed paying 3.7%
No mention whatsoever of the bonus.
If she had filled in the transfer form and sent it (I think) she would have lost the 0.2%.

Yesterday I received a letter advising my ISA would come to an end on 30th APRIL and would reduce to a Saver Direct paying just 0.5%.
Attached was a form to send for info about other available ISA`s.
No mention of the 0.2% bonus and no offer of the 2 year fixed for me.

Why are they sending different letters to identical account holders, why no mention of the 0.2% bonus.
Why are they sending letters a full three months BEFORE the accounts maturity.
Why when you ring them each time you get a different answer/story.
(3 so far)

They are a complete shambles, the lesson being don`t ever fall for a gimmicky "reward bonus" which they may never pay.

jennifernil

Those who qualify for the extra 0.2% need to be careful. If you move to the fixed rate, you will not have fulfilled the terms of the ISA4 so may well not get your extra 0.2%. It's not worth a lot anyway, so probably better to move immediately if that is your plan.

2010

jennifernil wrote: »

Those who qualify for the extra 0.2% need to be careful. If you move to the fixed rate, you will not have fulfilled the terms of the ISA4 so may well not get your extra 0.2%. It's not worth a lot anyway, so probably better to move immediately if that is your plan.

Just to add, if you have the full years allowance £5340 and transferred immediately to the 2 year fixed, you`d lose around £10-68 but that`s for the FULL year.

lisyloo

My letter gave me a tear off strip at the bottom and a reply envelope if I wanted info about Halifax ISAs.
I'm moving to Virgin at 2.85%.
Lower rate I know but I want access.

2010

lisyloo wrote: »

I'm moving to Virgin at 2.85%.
Lower rate I know but I want access.

Higher than Halifax though. (2.6% with a bonus)

Virgin looks a pretty good one with no bonus and instant access.
Just hope the Halifax doesn`t drag it`s heels with the transfer.