Halifax's ISA Direct Reward not being for 12 months?

Nine_Lives

When i took this out, i thought it was for 12 months. It's the instant access one. IIRC it's the one that was 3% if you didn't have a Halifax current account, but 3.2% if you did have (a current account). I think i opened mine around June & thought it was for 12 months.

Just received a letter to say the period is ending & i'll be dropped to 0.5%, i can transfer to a 2yr fixed if i wish - so this seems to be the product they're pushing.

Anyway, is it a cert then that the rate will end 5th April, or is it really a 12 month ISA (just not fixed)?

On the plus side, after the recent bad news Halifax have gotten on MSE, at least they contacted me to say my account will be reducing in interest rate. Nationwide never did.

jen245

Did you re-designate to Reward 4 from a previous issue of ISA?

Mandelbrot

Do you have a Certificate of Investment?
If so, all the useful info will be on that.
The 5th April is the date for interest payment, not the date for the rate to change (unless you opened the account on the 5th April).

Issue 4 of the Direct Reward ISA (the last one worth having, Interest Rate 3.0% AER, with an extra 0.2% if you had a 'qualifying current account') ran from 27 Feb 2011 to 31 July 2011, and the 3% lasted for 12 months. (Theoretically it was variable but it never did vary - they 'varied the rate' by bringing out Issue 5 at 2.6%.) At the end of the 12 month period the rate dropped drastically and any sensible person would jump ship at that point (transfer or redesignate).

Nine_Lives

I didn't think i had the form but it turns out i do. It says i started the account on 5th April 2011.
My details are showing as 3%:

28 Apr 11 Interest (Gross) INT 5.53
17,701.24 05 Apr 11 Interest (Gross) INT 0.06
17,695.71 28 Apr 11 BRANCH CHEQUE CREDIT WITHOUT BOOK DEP 5,256.93
17,695.65 05 Apr 11 Interest (Gross) INT 138.71
12,438.72 08 Nov 10 Interest DEP 13.13
12,300.01 08 Nov 10 BRANCH OPENING CREDIT CHEQUE DEP 12,286.88
12,286.88
I thought i opened it much later. That's all "old" tax year money too. This tax years is in a Santander account.

Vortigern

K_P83 wrote: »

12,300.01 08 Nov 10 BRANCH OPENING CREDIT CHEQUE DEP 12,286.88

Halifax systems (and others) leave a lot to be desired in terms of description of source of funds. That so-called "BRANCH OPENING CREDIT CHEQUE" is most likely a transfer from another ISA. As far as I'm aware, you can't open an ISA with a cheque for £12,286.88 at a Halifax branch!

rb10

Vortigern wrote: »

Halifax systems (and others) leave a lot to be desired in terms of description of source of funds. That so-called "BRANCH OPENING CREDIT CHEQUE" is most likely a transfer from another ISA. As far as I'm aware, you can't open an ISA with a cheque for £12,286.88 at a Halifax branch!

That's just a side-effect of using cheques - it's nothing to do with Halifax's systems.

Once all ISA transfers are done electronically, this will become clearer.

Nine_Lives

Vortigern wrote: »

Halifax systems (and others) leave a lot to be desired in terms of description of source of funds. That so-called "BRANCH OPENING CREDIT CHEQUE" is most likely a transfer from another ISA. As far as I'm aware, you can't open an ISA with a cheque for £12,286.88 at a Halifax branch!

Correct. I had an ISA with Halifax which housed "old money" (previous tax years). They then had an ISA that offered higher rate of interest (IIRC, i was with them on 2.8% & they offered this shiny new 3.2%), so i switched, internally. That would be what the entry is.