Are Halifax Cash ISAs Fraudulent?

AmIBeingRobbed

jimjames wrote: »

They wouldn't necessarily know the rate that would be in force in 12 months time. What they would say is Rate includes 2.5% bonus payable for 12 months. Its only maths to work out that 3%-2.5% would mean 0.5% after that time.

There is no good reason why banks cannot quote interest as +/- a few percent under or over base rate.

But you diverge from the point a bit....the blurb rarely never states what bonus or interest applies after 12 months, does it? That is a potentially fraudulent omission whose sole purpose is to deceive.... See item below from the Halifax web site.
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Interest rate currently payable is 3.00% tax free/AER variable which includes a fixed introductory bonus of 2.75% for 12 months from the date of account opening, for accounts opened from 5th March 2012. At the end of the bonus period, variable rates without bonus will apply, currently this is 0.25% tax free/AER.
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Note how the interest includes the bonus .... and no one can be sure what the split between interest and bonus would be the following year? It does not have to be the same.

AmIBeingRobbed

Sceptic001 wrote: »

That is a very interesting figure. Please can you supply the source.

Is the figure calculated simply by averaging the rate across the range of available accounts (in which case it is utterly meaningless)? Or does it take into account the size of the balances in the accounts? In which case it would be very disturbing.

It is probably correct. Look at:


http://www.bankofengland.co.uk/boeapps/iadb/index.asp?Travel=NIxSTxTIx&levels=1&XNotes=Y&XNotes2=Y&Nodes=X40727X40728X40754X40755X45786&SectionRequired=I&HideNums=-1&ExtraInfo=false&A40763XBMX40727X40755.x=9&A40763XBMX40727X40755.y=8

Interest rates tanked at the end of 2008 and never recovered. Probably due to Mervanomics - reducing interest rates to the point it pounds savers and pensioners interest - and raises house prices to levels no one can afford.

AmIBeingRobbed

Hooloovoo wrote: »

Once every 12 months is hardly constantly.
Then open up an account that doesn't pay a bonus. Commonly known as a "pure" account.

Don't know about you - but I put my dosh in a lot of pots to reduce the risk. Do I really want to change each's pot once/year. Noo thank you !!!

Hooloovoo

AmIBeingRobbed wrote: »

Note how the interest includes the bonus .... and no one can be sure what the split between interest and bonus would be the following year? It does not have to be the same.

You're just making this far too complicated.

What "split" the following year? There is no bonus once the bonus rate ends. It's that simple.

If that paragraph you quoted is not clear enough for you then I fear you are beyond help.

Even if they didn't quote what the new rate would be, how hard is it to work out 3% - 2.75% = 0.25% ??

AmIBeingRobbed

Hooloovoo wrote: »

Don't they?

http://www.halifax.co.uk/savings/interest-rates/

I don't see anywhere that gives much indication about what interest applies after 12 months.....

But the reality is base rates are about .61% per annum due to the Good Old Bank of England. That artificially low rate probably forces banks to play a half baked "bonus" game.

Normally, I don't save much in cash because interest rates are usually pretty poor.

Hooloovoo

AmIBeingRobbed wrote: »

I don't see anywhere that gives much indication about what interest applies after 12 months.....

Apart from the massive blue headers that say in big letters "including bonus" and "excluding bonus".

wriggly

AmIBeingRobbed wrote: »

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Interest rate currently payable is 3.00% tax free/AER variable which includes a fixed introductory bonus of 2.75% for 12 months from the date of account opening, for accounts opened from 5th March 2012. At the end of the bonus period, variable rates without bonus will apply, currently this is 0.25% tax free/AER.
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Note how the interest includes the bonus .... and no one can be sure what the split between interest and bonus would be the following year? It does not have to be the same.

You have got to be joking! The split is obvious. I'm actually surprised that is the text you're complaining about.

The interest rate on the account is currently 0.25%. This may change at any time.

However, for the first 12 months you will receive a bonus interest rate of 2.75%. Adding to the rate above gives you 3% for the first year.

No bonus applies after 12 months, so you will just get the 0.25%. However, as stated, this rate can change.

Linton

AmIBeingRobbed wrote: »

Don't know about you - but I put my dosh in a lot of pots to reduce the risk. Do I really want to change each's pot once/year. Noo thank you !!!

If you have that much money in cash can I suggest you are not making best use of it - you are guaranteed to £85K. If you really have a lot of £85Ks perhaps variable rate cash accounts isnt the best place for them.

A fixed rate deposit does exactly what it says on tin - pays the stated interest for the stated time, and the interest rates are much better than a cash ISA, even with a bonus.

rockitup

I just keep a simple reminder on the free calendar programme on my computer for any important dates like that.

Sceptic001

AmIBeingRobbed wrote: »

It is probably correct. Look at:


http://www.bankofengland.co.uk/boeapps/iadb/index.asp?Travel=NIxSTxTIx&levels=1&XNotes=Y&XNotes2=Y&Nodes=X40727X40728X40754X40755X45786&SectionRequired=I&HideNums=-1&ExtraInfo=false&A40763XBMX40727X40755.x=9&A40763XBMX40727X40755.y=8

Thanks for that link. I must say I am astonished that the banks are paying an average of 0.65% on ISA balances, but on the other hand I suppose I should be grateful to all those hapless idiots that accept these rates (or less) so that I can get 3.5% on my instant access ISA. :j

And yes, I have made a diary note to remind me to shift it when the bonus expires. :rotfl: