Re-designating my Halifax ISA Direct Reward 4

miller

Mr_K wrote: »

Not sure what to do anylonger. At the moment just transfering to Nationwide and leaving a bit in the Halifax ISA until I get the 0.2% bonus seem the best bet. But this will take weeks and no doubt and i'll be losing a significant amount of interest in the meantime.

It took 9 days in total from when I posted the transfer forms to Nationwide to receiving the funds. Not too bad, but as we get closer to "ISA season" I guess it could take longer.

Eponym

Mr_K wrote: »

Hmmm. Well ISA matured yesterday, interest has been paid but no sign of a 0.2% bonus. rang up and they said it would be paid the the main interest date in April. Don't really want a large sum of money earning 0.5% interest for a month just to wait for this 0.2% bonus.

Asked about redesignating to 2.6% account, said they couldn't do it directly and that i'd have to apply for the 2.6% account, and then fill in a transfer form. What a time wasting (profiteering) faff !

Also asked if this new account would keep the same account number and then get the 0.2% bonus, after some hesitation they said yes, but didn't seem at all certain.

Not sure what to do anylonger. At the moment just transfering to Nationwide and leaving a bit in the Halifax ISA until I get the 0.2% bonus seem the best bet. But this will take weeks and no doubt and i'll be losing a significant amount of interest in the meantime.

Mine matured this morning. I was going to ring them later with the intention of getting them to redesignate to their highest ISA rate (so I'm not stuck on 0.5%) while I shop around for a better rate.

I happened to pass a branch earlier so I went it and they suggested I use the branch phone to call up to change it and save me the money for the call.

I tried to get the 2.6% rate but they said they couldn't do it for me on the phone and I would have to apply online. I said no as it would take weeks so they put me on the 2.4%. It'll do while I see what new ISAs come on the market in the run-up to the new financial year. (If Halifax don't come up with something better than 2.6% I'll be disappointed and move elsewhere!)

Whilst I was on the phone I asked when the reward interest (the 0.2%) would be added. He put me on hold for some time and then came back and said it was on the anniversary of the current account opening! That's clearly not right so I told him my current account anniversary is in December. He then checked whether I'd had it already, I told him no. I suggested 5th April and he then said that was right.

Clearly he didn't have a clue!

Mr_K

Well rang again and got somebody more clued up (always worth trying).

Initially was told the same story. My only options were to redesignate to the 2.4%, or open the 2.6% online and do a transfer. Opening the 2.6% would entail a new account no and mean that i'd lose out on my 0.2% bonus (due in April). So decided to go fo the 2.4% and keep the same account no. for the time being. He went away and came back saying they could redesignate to 2.6% online saver after all (!), therefore keeping the same account no (so still get my 0.2% bonus). So gone for that. Ain't going to make a lot of difference as i'm still going to transfer to the 3.1% Nationwide account once I've got the bonus next month.

It's all very confusing for both customers and Halifax employees..... If they say you can't be redesignated to the 2.6%, persist (or ring back again) because it can.

Mr_K

Eponym wrote: »

Whilst I was on the phone I asked when the reward interest (the 0.2%) would be added. He put me on hold for some time and then came back and said it was on the anniversary of the current account opening!

that's the same as i've been told. i didin't open the current account till April, but my ISA was opened in March, so might be different time to other peoples 0.2% bonus. (i think !)

Mandelbrot

Eponym wrote: »

Whilst I was on the phone I asked when the reward interest (the 0.2%) would be added. He put me on hold for some time and then came back and said it was on the anniversary of the current account opening! That's clearly not right so I told him my current account anniversary is in December. He then checked whether I'd had it already, I told him no. I suggested 5th April and he then said that was right.

Clearly he didn't have a clue!

I think part of the problem is the terminology.

My understanding is that the Rewards interest will be added to your account when the 12 months is up (either the anniversary of the ISA if qualifying current account already held at that time, or the anniversary of qualifying current account if this came after ISA opening).

But 'added' doesn't equal 'paid'.

This interest will only be paid into your account (i.e. visible to you) on your next normal interest date (for the account in question). In the case of an ISA, the 5th April.

Clearly, once you have 'earned' this interest (satified the criteria in the T&Cs), it is also payable on closure of the account.
If you make a change to the 2.6% ISA, then (until reading Mr K's experience ) you were closing the DR ISA and opening another ISA with a different number (in a transfer). So all the interest is paid on account closure and transferred to the new account.
In the case of a change to the 2.4% ISA - redesignating and keeping the same account number - there is no closure, so no early payment of the interest.

I still can't work out why there should be a difference between moving to the 2.4% or the 2.6% accounts. (Didn't many people redesignate to the online DR4 over the phone?)

And having read Mr K's post, and others about getting interest before the 5th April without account closure, it still seems that the actions of Halifax are not exactly consistent ...

jennifernil

No, the whole thing is a mess and different people are being told different things.

I argued with them on the phone regarding the 2.6% account, but got nowhere. As the NW now has my transfer form, I am not going to bother ringing them back. Their poor rates have lost them £45k over our 2 ISAs.

jennifernil

Mr_K wrote: »

Well rang again and got somebody more clued up (always worth trying).

Initially was told the same story. My only options were to redesignate to the 2.4%, or open the 2.6% online and do a transfer. Opening the 2.6% would entail a new account no and mean that i'd lose out on my 0.2% bonus (due in April). So decided to go fo the 2.4% and keep the same account no. for the time being. He went away and came back saying they could redesignate to 2.6% online saver after all (!), therefore keeping the same account no (so still get my 0.2% bonus). So gone for that. Ain't going to make a lot of difference as i'm still going to transfer to the 3.1% Nationwide account once I've got the bonus next month.

It's all very confusing for both customers and Halifax employees..... If they say you can't be redesignated to the 2.6%, persist (or ring back again) because it can.

Don't wait, get NW organised now, you have earned the bonus already. As long as you have had the account for the full 12 months you have fulfilled the conditions, no need to wait till April 5th.

Ask them where it says you would not get it!

AirlieBird

Mandelbrot wrote: »

But 'added' doesn't equal 'paid'.

This interest will only be paid into your account (i.e. visible to you) on your next normal interest date (for the account in question). In the case of an ISA, the 5th April.

But as I've repeatedly pointed out in other threads on this subject the T&C clearly state that the Reward interest will be paid at the end of the reward period

All customers that fund their Halifax ISA
Direct Reward between 22nd September
2010 and 5th April 2011 will receive an interest
payment on 5th April 2011 and at the end of
the reward period.
All customers that fund their account after
6th April 2011 will receive interest at the end

of the reward period

jennifernil

It may say that, but it seems it is not happening that way for most people!

Mandelbrot

The section quoted by AirlieBird is about standard Direct Reward interest, not the extra 0.2% Rewards interest.

The section in the T&Cs relating to the Rewards scheme includes this sentence :
"The additional interest will be applied to your account on the next interest payment date after the 12 month reward period."