Usual confusion with Halifax Direct Reward 4

purplestar133

Hi everyone, it's that busy time of year again...

Just can't get a handle on when the right time is to transfer out my Halifax Direct Reward ISA Issue 4.

I am not entitled to the extra 0.2% 'reward', was just using the account to get the 3% for 12 months - am I correct that it was guaranteed to be a certain amount above base rate for 12 months? (Confused as have a Santander ISA with similar guarantee).

My question is, do I need to wait until 12 months from opening of account to get the 3%, if I transfer out earlier will I lose that interest rate? Also, is it 12 months from opening date or 12 months from when the funds were first received? I didn't receive a certificate of investment so I don't have a date apart from on various letters and I haven't had a reminder letter that it's coming up to 12 months from when I opened it.

I've reread the T&Cs but the extra 0.2% reward is clouding the issue and I'm not sure which 'reward' is being referred to and when...:think:

Mandelbrot

Not having to be concerned about the 0.2% Rewards interest makes things straightforward.
You can move the money whenever you want and get the full 3.0% until that time. Well, for all the period it has been a DR4 anyway - you don't say whether it was redesignated from a DR3 at any point; (but it could now have been a DR4 from birth since these started 27/2/11).

There was no reference to base rate (as such). The rate was 3.0% for a year, after which time the Halifax ISA Saver Direct conditions and rates apply. The Saver Direct rates were then at 0.5% (Mar 2011). I've just looked on the Halifax website, and the rate for that account is now listed as 1.0%. (I'm not entirely convinced, as I can't see any reason for them to have raised it - but that's what it says.)

The T&Cs state :
"If you made your opening payment into your Halifax ISA Direct Reward on or after 23rd July 2010 (regardless of the date on which the account was opened) then during the Halifax ISA Direct Reward year you will receive an interest payment on 5th April 2011 and also on the anniversary of the date we received your payment."

That seems (to me) to indicate that the "Halifax ISA Direct Reward year" (i.e. the period for which the 12 month 'bonus period' runs) starts when they receive your first payment - which I suppose is good for the customer. I can't speak from personal experience on this, though, as my full amount went in at the time of opening.

purplestar133

Mandelbrot wrote: »

Not having to be concerned about the 0.2% Rewards interest makes things straightforward.
You can move the money whenever you want and get the full 3.0% until that time. Well, for all the period it has been a DR4 anyway - you don't say whether it was redesignated from a DR3 at any point; (but it could now have been a DR4 from birth since these started 27/2/11).

There was no reference to base rate (as such). The rate was 3.0% for a year, after which time the Halifax ISA Saver Direct conditions and rates apply. The Saver Direct rates were then at 0.5% (Mar 2011). I've just looked on the Halifax website, and the rate for that account is now listed as 1.0%. (I'm not entirely convinced, as I can't see any reason for them to have raised it - but that's what it says.)

The T&Cs state :
"If you made your opening payment into your Halifax ISA Direct Reward on or after 23rd July 2010 (regardless of the date on which the account was opened) then during the Halifax ISA Direct Reward year you will receive an interest payment on 5th April 2011 and also on the anniversary of the date we received your payment."

That seems (to me) to indicate that the "Halifax ISA Direct Reward year" (i.e. the period for which the 12 month 'bonus period' runs) starts when they receive your first payment - which I suppose is good for the customer. I can't speak from personal experience on this, though, as my full amount went in at the time of opening.

Thanks for clarifying. I was new to Halifax with DR4 - I didn't redesignate. In that case I might go ahead and merge my DR4 with my existing Santander Flexible ISA into Santander's new two year fixed rate. Doesn't leave many headline rates left for this year's money as I will be drip feeding it in so won't have a large opening balance...I suppose 4% for two years with my existing ISAs could make up for that though.

Sorry, thinking out loud!