Halifax ISA Fixed Term Interest Rate Lower Than Expected

Mythopal

My Halifax 2-Year Fixed Rate Cash ISA matured on 6th February. They sent me a letter saying that I could re-invest the money in a new 2-Year Fixed Rate ISA, if I let them know five working days before the maturity. They said in the letter that the current two-year rate was 3.7%.

So I told them to re-ivest it. However when the confirmation letter came on 9th February, I discovered the rate was only 3.5%. The rate had been reduced in the time between my instructions and the new investment starting.

Halifax does not allow any cooling-off period for fixed-term investments, so I am locked into a 3.5% investment for two years when I expected to get 3.7%. What can I do? Do I have a legitimate complaint?

SallySunshine

The money.co.uk site states that the Halifax 2yr fixed ISA has been withdrawn and it was at the rate of 3.5%, but you had been offered 3.7% as an existing account holder.

If you have the letter stating this and you applied within the time frame they gave you I'd have thought you would have a case against them and would certainly take them to task.

Mythopal

Yes the 2-year ISA rate was 3.7%, but reduced to 3.5% on 6th February.
My complaint is that Halifax expect you to complete a Maturity Instruction form when you don't know what the rates will be when your investment matures.

savemoney

I got same letter about 3.7% but when I rang them they said its now 3.5% but if I went into branch they would honour the old deal, this was a couple of weeks back. I have since decided not to go for it

opinions4u

Mythopal wrote: »

My complaint is that Halifax expect you to complete a Maturity Instruction form when you don't know what the rates will be when your investment matures.

You could wait until maturity and do it then. The ISA season isn't in full swing yet. I'd expect other providers to show their hand over the next couple of weeks.

Fixed rate markets move frequently and while it is possible for a provider to guarantee an interest rate it can prove to be an expensive way of doing business of the markets move against them.

My understanding is that if you received a letter offering the 3.7% they will honour that. Talk to them.

akh43

Mythopal wrote: »

My Halifax 2-Year Fixed Rate Cash ISA matured on 6th February. They sent me a letter saying that I could re-invest the money in a new 2-Year Fixed Rate ISA, if I let them know five working days before the maturity. They said in the letter that the current two-year rate was 3.7%.

So I told them to re-ivest it. However when the confirmation letter came on 9th February, I discovered the rate was only 3.5%. The rate had been reduced in the time between my instructions and the new investment starting.

Halifax does not allow any cooling-off period for fixed-term investments, so I am locked into a 3.5% investment for two years when I expected to get 3.7%. What can I do? Do I have a legitimate complaint?

When this happened to me with a fixed term savings bond with Halifax I phoned up CS to complain and they worked out the difference between what I would get on the amount invested and what I should have got and credited that to my account to make up for the drop and as the 4 year one I applied for was now the same rate as the 3 year one then I was allowed to close the 4 year one and reinvest in a 3 year one.

Try ringing them as I have always found them helpful.

Comfortably_Numb

We got the letter, but the rate went down before we replied. I rang them, and they gave us both 3.7%, as the letter gave until 1st March to respond. Ring them.

Mee

I didn't get a letter re: 3.7% ... so wrote to complain (pen and paper works wonders). Had a few phone conversations with a very helpful lady in Halifax customer services. Apparently, only those who have marketing preferences (paper) switched on received said letters.

I have already set in train transfer outs, but they've agreed to fixing my current year ISA subscription and interest from previous years at 3.7% and will receive the agreement in writing. I've given up caring about the 0.2% bonus...

poisonheart666

guys you need to check you letters that you have received, if you have a letter stating "to avail of the offer call before the 1st march" then you have received the early bird incentive that means you are entitled to the 3.7% rate, if you havent then the rates are subject to change and you are stuck with 3.5 however if you are within you 14 day cooling off period, call into branch as they can close you account and open you up a new one at 3.7% as the rates have no gone up again.

MoneySaverLog

3.7 is probably going to be the best deal you can get from Lloyds group, if they have already decreased it to 3.5. Glad I got the 3.7% with lloyds albeit I need the £10k as soon as I can in my ISA.

blandford_flyer

Beware! My wife had the same thing with Halifax i.e. a letter stating that if she re-invested her 2 year fixed term bond she would get an improved rate of 3.7% rather than the 3.49 she been on. She signed the forms and returned in the post only to receive a written confirmation that the new 2 year bond was now open at a rate of 3.2%!!. She rang Halifax CS and was told she could cancel the bond within a 14 day cooling off period. So she went to our local branch last Saturday morning and did this with their assurance that there was no penalty charge. We found out by checking online later that day that they have deducted £800 from the account. We are currently in the process of trying to resolve this with HBS and we are both very concerned that we may not get this penalty reimbursed even though she was given wrong information by telephone and in branch.