Halifax Junior Cash ISA paying 6%

chrisnw

chrisnw wrote: »

Apparently although there were at least 6 staff in the branch and it was not busy, only one member of staff was "Trained" to do this, even the manager was not allowed to do it. PATHETIC is the word that came to mind (not only to mind actually) and I left.

So I waited over the week-end to see whether any other institution was going to respond to the Halifax offer and launch another decent JISA account. However as nothing better seems to be on the horizon I swallowed my pride yesterday and called two other reasonably local branches of The Halifax.

danielinto wrote: »

The manager of the branch does not need to know how nor have authority to sell you all products on offer. In your example, his job would be to get a properly trained adviser to cover for the one off sick, usually by a transfer from a bigger branch.

The first branch told me that the only person at their branch that could open a Child Cash ISA was on leave all week and that there was no one else that could do it. "Would I like to make an appointment for next week?" I said "Forget it"

The second branch, the largest locally in a major West Country city, again initially told me that there was only one member of staff that could do this and that the first available appointment was not until Friday. When I expressed my incredulity the staff member I was speaking to eventually admitted that they also had a 'floater' who could open ISAs and that provided I avoided busy times they should be able to help me, just go to the 'Help and Advice desk' I was told.

So this morning I tried again at 9:30, and was not entirely surprised to be stone walled by the lady on the 'Help and Advice' desk (her most important task seemed to be cleaning the computer screen, they were so busy). Only one member of staff was allowed to do this, no Junior Cash ISA without an appointment was still the message. After protesting that this was contrary to the advice I had been given on the 'phone yesterday the manager was called. After waiting for 15 minutes he eventually appeared and I was ushered into an interview room and asked to explain my problem. I reiterated what I had been told the previous day and what I thought of a supposedly leading edge financial institution that couldn't open accounts when their customers wanted them. I was stone walled again with the "There is only one member of staff who can do this sir because of FSA regulations" line, and made to feel quite uncomfortable, not to say the guilty party. I also queried how long the process would take, and told about half an hour as they had to check lots of information with me and go through all the terms and conditions etc. I expressed my further incredulity.

Finally the manager did grudgingly apologise for the incorrect information I had been given, saying he would register this as a complaint and asked what he could do to rectify matters. I told him he needed to arrange for the account to be opened then and there. At this point, still protesting that he couldn't do this as he didn't have anyone qualified available, he said he would see whether he could arrange something and left the room. A few minutes later I was ushered into the adjacent interview room where a very pleasant young man was already logged on to the system. He proceeded to work through the process which consisted of a lot of mouse clicking and key tapping, but only actually asking me about four questions, checking IDs and my existing account. Job done in less than 15 minutes. Afterwards he admitted he had not done one of these before. I reckon that the second one he does should take him no longer than 10 minutes and he could easily get it down to 5 minutes after that!

So in the end a result, but the total time in the branch of 50 minutes to have an account opened is no way to run a service business. Needless to say I didn't hang around afterwards to complete registering my original complaint with the manager, although it might have been fun to ask him whether he had lied to me or broken the FSA rules. He clearly must have done one or the other!

I am under no illusion of course that this account will remain in any way competitive in the medium term. I predict that it will be closed to new business within weeks rather than months, and that the variable rate will be systematically reduced over the next year or so to the point of being only marginally better than anything else. Finally after about 2 years it will probably be paying a lot less than other equivalent products, including those from the Halifax. I would be very happy to be proven wrong in these predictions, but I am not hopeful. It would be good to see a financial institution break the nasty habit of the industry of enticing funds in with high rates, only to let them "wither on the vine". This has been the pattern over many years now and penalises the less financially savvy, it also creates a lot of unnecessary work for those who are able to keep abreast of changes having to repeatedly chase decent rates of return. Wouldn't it be great to be able to just put savings into an account and be sure it would earn a competitive rate until you needed them?

I do think people generally need to be less accepting of the poor level of basic customer service provided by some of the financial institutions.

OK Rant over.

martinm1

unfortunately for the banks to make billions many people have to have poor interest rates on their accounts, so it is only the more astute who need to constantly switch accounts - its time consuming - but when large sums are involved then it is necessary. the other alternative is to risk it in a fund - where the fat cat at the top takes a huge sum whether the fund does well or not and you pay for it in the yearly commision.

In terms of halifax customer service my branch in essex is the same as the rest - poor customer service. But ive had similar experiences in natwest, santander and barclays.

martinm1

remember that these isas are transferrable - so if the rate drops - ditch and move on.

martinm1

aliasojo wrote: »

Withdrawals from any Junior Cash ISA are not allowed until the child reaches the age of 18, except in case of the child's death or terminal illness.


Is this usual for all/most child ISAs?

Its government rules im afraid

huwcyn

I have had similar dealings with the Halifax over the years with very few people in branch knowing what they are doing.

However I want to open a 6% Jisa for my kids and can't find terms and conditions online or over the phone. I just want to know whether the 6% is an initial rate and will come down after 12 months or whether it will remain in place unless otherwise notified.

If it is to come down I'd probably prefer a lower initial rate with a more consistent rate offering Building Society.

Thanks

opinions4u

huwcyn wrote: »

I have had similar dealings with the Halifax over the years with very few people in branch knowing what they are doing.

However I want to open a 6% Jisa for my kids and can't find terms and conditions online or over the phone. I just want to know whether the 6% is an initial rate and will come down after 12 months or whether it will remain in place unless otherwise notified.

If it is to come down I'd probably prefer a lower initial rate with a more consistent rate offering Building Society.

Thanks

There's no term on the rate. It's not a bonus. I'd hazard a guess that it won't last forever but while it's just about double the alternatives, it's well worth the effort.

Kay6759

Am I right in thinking that if I open a Halifax cash ISA in my name (I haven't got one at present) with £1, I can then open a Junior ISA for my son and get the 6% interest on the lump sum that is in his? It seems too good to be true, have I missed anything??

Kay6759

By the way, my son is 15

opinions4u

Kay6759 wrote: »

Am I right in thinking that if I open a Halifax cash ISA in my name (I haven't got one at present) with £1, I can then open a Junior ISA for my son and get the 6% interest on the lump sum that is in his? It seems too good to be true, have I missed anything??

That would work.

anselld

Kay6759 wrote: »

Am I right in thinking that if I open a Halifax cash ISA in my name (I haven't got one at present) with £1, I can then open a Junior ISA for my son and get the 6% interest on the lump sum that is in his? It seems too good to be true, have I missed anything??

Only that the money cant be withdrawn till hes 18 and you cannot put money in another cash ISA this tax year.