Re-designating my Halifax ISA Direct Reward 4

jennifernil

Tomorrow (29/02) is the end of my 12 months on the 3% rate with Halifax.

I have already transferred part of my balance to the BOS 2 year 3.7% fix, and have opened the Nationwide latest 3.1% instant access ISA and requested they transfer in the balance of my Halifax ISA.

Nationwide will have received my transfer form yesterday (27/02). They promise to pay interest from the day they receive the form, but say the transfer will take 4 weeks to complete.

So my plan is to ring Halifax on 01/03 and ask them to redesignate the account to their current instant access ISA that now pays 2.4%, thus gaining a little extra interest till the money is sent to Nationwide.

I have checked that the account number will remain the same (since I have already given Nationwide the account number), but I wondered if anyone who has made this type of move can confirm that the re-designation is instantaneous?

I don't want my account disappearing into cyberspace for a few days, meantime the transfer request arrives from Nationwide, and Halifax reject it because they cannot find my account.

Mikeyorks

Not sure I'm following. If you've already moved (part of - so assuming there was more than 11/12 subscriptions in it?) to the 2 year fix ...... that is normally a 'redesignation'.

So did you transfer it formally and now have separate ISAs at 3% and 3.7% - with different account numbers? In which case what you are proposing will work. Provided it is simply redesignated. I've moved the 3% to 3.7% as a redesignation - and it was instant.

jennifernil

Yes, I opened a new account for the fix as I have gone with the Bank of Scotland one (same rate but lower penalty if withdrawal is required), this needed a transfer form to be used. Opened it on-line then handed the transfer form in at our branch, all sorted in a few days.

It was all old money, unfortunately I haven't had enough spare cash to pay in at all in 11/12!

I am hoping this next move will go smoothly, like yours, there have been a couple of reports of some taking a while to go through.

Did you get your interest added at the time of re-designation?

Mikeyorks

jennifernil wrote: »

Did you get your interest added at the time of re-designation?

Indeed ......... all apart from the extra 0.2%. Which is not due until mid-March.

Mr_K

I'm in the same position, my Halifax 3/3.2% ISA is about to mature in a few days. (Does the bonus 0.2% get paid at this time aswell ?) Going to transfer to the Nationwide 3.1%. In the meantime I'll redesignate to the Halifax 2.6% ISA. From what I remember from last time I did it, it was pretty much instantaneous to redesignate. Did it over the phone but there used to be a web form to do it, can't see that it exists any longer.

Surprised the Halifax don't seem to be competing with Nationwide, not everyone wants a fixed rate account. A lot of money is going to flow away from them.

jennifernil

I can see I will need to be clear about which ISA I wish it to become!

When I rang them to check that I would keep the same account number, they told me the interest rate would be 2.4%, but I can now see that that is the "ISA Saver Variable". The "ISA Saver Online" gives 2.6%.

I was also told that interest would NOT be paid on re-designation, it would not be paid until 5th April, including the extra 0.2%, so we shall see.

My year for the 0.2% was up last November according to Halifax, as it ran from the opening of my ISA 3, even though there was no money in it for over 3 weeks (awaiting transfer in). So I am losing interest on my interest right now, hence my decision to move from Halifax. That and the better rate at Nationwide of course.

I too am surpised they are not competing on interest. They might start doing that nearer 6th April of course, in which case I can always transfer back!

jennifernil

Mr_K wrote: »

Going to transfer to the Nationwide 3.1%. In the meantime I'll redesignate to the Halifax 2.6% ISA.

The Nationwide one takes a while to open, so start now.

I opened on-line with zero balance on Friday 17/02, account opening letter arrived 23/02, followed by ISA Transfer Pack on Friday 24/02. Returned that day so should have been with them on Monday 27/02.

All has to be done by snail-mail. We don't have a branch nearby, but if you do, they may do it quicker if you go in.

Mr_K

jennifernil wrote: »

I too am surpised they are not competing on interest. They might start doing that nearer 6th April of course, in which case I can always transfer back!

If Halifax were going to launch a more competitive instant access ISA I think they would have done it by now.

jennifernil

jennifernil wrote: »

I was also told that interest would NOT be paid on re-designation, it would not be paid until 5th April, including the extra 0.2%, so we shall see.

My year for the 0.2% was up last November according to Halifax, as it ran from the opening of my ISA 3, even though there was no money in it for over 3 weeks (awaiting transfer in). So I am losing interest on my interest right now, hence my decision to move from Halifax. That and the better rate at Nationwide of course.

Interestingly, I have just logged on to my internet banking and noticed that my ISA seems to have "matured" late this evening, one day earlier than they said.

Interest has been added, and the rate is now showing as 0.5%.

Need to get my calculator out and check if they have added (at least) the correct amount.

So totally at odds from the info given to me today........now there's a surprise!!

miller

jennifernil wrote: »

Need to get my calculator out and check if they have added (at least) the correct amount.

I got my calculator out and I think they have made a mistake (again) on mine at least. It relates to this period:

28/02/2011 - redesignated to ISA 4 until 05/04/2011 - interim interest paid

The rate applied is 2.8% which
a) was the old ISA 3 rate
b) does not include the 0.2% reward bonus for current a/c customers

In additon the 2 month period from opening (whilst it was ISA 3) has not attracted the 0.2% pro-rata, fair enough as I think the T&C's said it needed to be held for 12 months to get the reward interest.

:mad:

jennifernil

Almost lost the will to live dealing with Halifax, have made 2 calls, first one cut off after 22 minutes, second one took 45 minutes.

They will not redesignate to the 2.6% on the phone, as it's an on-line account, but they CLAIM you can do it by going into a branch! They got short shrift there of course as we no longer have Halifax branches.

Then they insisted on checking this really was a Halifax account.......apparently they might have moved it to BOS........err, really? Without telling me?

They will redesignate to the 2.4% one, so as we are both about to transfer out anyway, we have gone for that meantime......it's better than 0.5%.

If anyone does manage to get the 2.6%, please post up your experience.

On my first call, after being passed around, I was told it could be done, but not till tomorrow. I was just querying this when I got cut off. On my second call I was given the info above.