Halifax ISA interest issues

lisyloo

Just hope the Halifax doesn`t drag it`s heels with the transfer.

There are some guidelines/rules now for it to take 15 (working?) day, but if it does take longer then Virgin will pay the interest anyway from day 16.

Mikeyorks

For those with maturity dates into April ........ one assumes that Halifax consider their 3.7% rate will be pulled / varied by then. Either that or they're not prepared (as has happened in previous years) to 'guarantee' the rate that far forward.

If you want it - then opt in now as the Direct Reward is variable. But do consider the new fixed rate - might be better than 3.7%!

On the 0.2% for those fixing at 2 years ....... it can't be an issue, because the money remains in the same account.

2010

Mikeyorks wrote: »

On the 0.2% for those fixing at 2 years ....... it can't be an issue, because the money remains in the same account.

The issue is if you decide to transfer now to the 2 year fix it will be a new account.
£1 MUST be left in the old account to get the 0.2%.
When the interest plus the bonus is added (on anniversary) you`ll revert to the 0.5% saver direct account and you`ll have to move it somewhere then.

Mikeyorks

2010 wrote: »

The issue is if you decide to transfer now to the 2 year fix it will be a new account..

It isn't a new account .... it's the same Sort Code / Account number ..... simply redesignated. I've just completed two and have the online evidence.

£1 MUST be left in the old account to get the 0.2%.

But you cannot do that if the account only holds current year subscriptions - which can't be split. In any event it's academic as the funds for the 2 year fix don't go anywhere. They simply remain in the original account + pro-rata interest at 3% to the point of redesignation. The 0.2% should then join in an the anniversary point. I've seen an earlier post which confirms this has happened in one case. The best a quick scan picks up is the quote here :

http://forums.moneysavingexpert.com/showpost.php?p=50707157&postcount=15

2010

Mikeyorks wrote: »

It isn't a new account .... it's the same Sort Code / Account number ..... simply redesignated. I've just completed two and have the online evidence.

The two you just completed , do they have the 0.2% bonus?

I was told on the phone that I could go ahead immediately and transfer to the 2 year fixed which would be a "redesignated" account keeping the same sort and number, BUT I would lose the 0.2% bonus.

The only way to retain it was to leave £1 in the existing account until maturity and transfer the remainder to another 2 year fixed account.

rb10

2010 wrote: »

The two you just completed , do they have the 0.2% bonus?

I was told on the phone that I could go ahead immediately and transfer to the 2 year fixed which would be a "redesignated" account keeping the same sort and number, BUT I would lose the 0.2% bonus.

The only way to retain it was to leave £1 in the existing account until maturity and transfer the remainder to another 2 year fixed account.

Although I'm no longer as close to the Halifax T&Cs as I once was, I suspect that you may have been given dodgy info there.

2010

rb10 wrote: »

Although I'm no longer as close to the Halifax T&Cs as I once was, I suspect that you may have been given dodgy info there.

I agree about dodgy info especially where the Halifax is concerned.
I`ve had three different versions of transferring to the 2 year fixed and retaining the 0.2% bonus from their "advisers".
See post #29

The 0.2% reward T&C clearly state the account must run for one year to receive it.

More about the fiasco here:

https://forums.moneysavingexpert.com/discussion/3530363

opinions4u

The second year of the 0.2% had slightly different terms and conditions.

The first year required you to qualify for the full year (e.g. current account funding etc). The second year would actually pay for each month that you qualified as long as the account was still open at the end of the year. So miss the £1,000 funding requirement a couple of times and you'd still get 10/12ths of 0.2%.

The other change that's been significant is that originially the calculations were done manually and added manually to the account annually. This now appears to have been automated with the credit included at the interest capitalisation date after the year expires - potentially a day short of two years after the 0.2% rate started!

The other issue is that the 0.2% doesn't apply to fixed rate accounts, at least not according to the T&Cs. But I'd be gobsmacked if Halifax were busy shunting people in to a FRISA that would cost them their 0.2%. It wouldn't surprise me if the LTSB platform couldn't differentiate between fixed and variable accounts when it comes to the 0.2%.

Apologies if that doesn't actually clarify anything. I have faith that Halifax will ensure that the right customers get the right money at the time they're meant to. And some will probably get a bit more than they should. But I can understand why staff in branches and call centres are confused. God help us mere customers!

Mikeyorks

2010 wrote: »

The two you just completed , do they have the 0.2% bonus?

Indeed. And I've moved them to the fixed rate a month and a half before the 0.2% is due to be paid. So that aspect is still 'belief' that it fully accords with the T&Cs - as the cash remains in the same account.

If it doesn't happen (and the 0.2% I seem to remember was a manual registration) I'll be bending their ear - and not letting go until it is paid.

carpy

Vortigern wrote: »

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?

same here!! ??