Are Halifax Cash ISAs Fraudulent?

AmIBeingRobbed

Hooloovoo wrote: »

Actually Halifax go one further and tell you precisely what the rate will be making the assumption that the base rate doesn't change.

"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."

Obviously the base rate could change, but they make it as clear as possible that the initial rate is a bonus and explicitly state when that bonus will end.

The term variable rate does not mean much !!! It used to refer to base rate +/- a few per cent. There is now no longer any reference to a base and that leaves the term variable rate meaningless.

But the base rate is so low, it is hardly worth mentioning.

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.

They don't have to know the rate in advance ..... surely they should quote the interest as base rate +/- a few per cent, not just say "variable" which can mean anything.

evenasus

AmIBeingRobbed wrote: »

I would prefer not have to keep an eye constantly on every single penny I have got.

I would prefer a longer term relationship with a honest bank paying reasonable interest than constantly shifting my dosh frequently to chase the best rate for a short term.

Do you really want to sepnd your life following up notes in your diary to obatin a few pence?

I have 20 savings accounts/bonds/ISAs with various banks/building societies.

It takes me all of two minutes to open a spreadsheet and check if any of them are about to reach maturity.

As for saving pennies? On £372K it would be considerably more than a few pence I'd stand to lose, if I didn't bother to keep a check on my finances.

AmIBeingRobbed

Hey careful!
Someone might marry you for your money - and get half your house if don't sign a pre-nup !!!
Personally, I wouldn't invest that much in savings accounts which is may be why my spreadsheet is very different from yours - and tracking a small savings account is something that dropped off my radar until after receiving the first statement in four years and finding out about the low interest rate which has clearly cost me several hundred pounds.

evenasus

AmIBeingRobbed wrote: »

Hey careful!
Someone might marry you for your money - and get half your house if don't sign a pre-nup !!!

Married many years ago!

pqrdef

Sceptic001 wrote: »

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.

So you can get a good rate only because most people don't. This could make you feel either uncomfortable or smug.

In a world apparently well supplied with "hapless idiots", we can either (a) try to save them from themselves, or (b) set out to take advantage of them.

This is how we know what kind of people we are.

Hooloovoo

pqrdef wrote: »

So you can get a good rate only because most people don't. This could make you feel either uncomfortable or smug.

In a world apparently well supplied with "hapless idiots", we can either (a) try to save them from themselves, or (b) set out to take advantage of them.

This is how we know what kind of people we are.

But this applies to all areas of life.

Those happy to put in the time and effort to check the prices in all supermarkets get the best deal on things they buy. Those that can't be bothered just go to one supermarket and end up worse off.

Those that can be bothered checking their gas and electricity tariffs get a better deal. Those than can't be bothered end up worse off.

Those that look for vouchers for their local restaurants get a better deal. Those that can't be bothered end up worse off.

There are hundreds of examples of where money can be saved by putting in some effort. Should we ban all vouchers, bonuses, and special offers just in case some people can't be bothered to look for them?

sparrer

If the OP put a tenth of the energy they took to write their post, into checking their bank accounts periodically, they would have more time and possibly money to do more constructive things with their life.

I have a television and regularly hear it being said that there are 10's of £k's unclaimed in forgotten bank accounts. This alone would give me the incentive to check my own banking history.

As a retired person I don't have a big income or much in savings but I do keep my eye firmly on what I have. When I choose a bank in which to deposit my money, it is my responsibility to reseach them then follow them to ensure I get the best from my savings. If you feel they are doing something you don't like it's no good grumbling, you chose them in the first place so simply go elsewhere.

opinions4u

AmIBeingRobbed wrote: »

Well I have written to the Halifax to see exactly what I did sign. I doubt I signed anything agreeing to 0.5% per annum.

The account in question will have been an ISA Direct Reward.

All the marketing materials around the account made it quite clear that the "Reward" rate of interest (2.6%, 2.8% or 3.0% depending on the date opened) lasted for a year, after which the account became an ISA Saver Direct. Since 2009 the rate on that account has been 0.5%.

It is most likely the best selling cash ISA account over the last couple of years. Dozens of members of this forum will have had one. Nobody appears to agree with your assertion that the change of rate at the end of 12 months wasn't made clear up front.

Additionally, they write at the end of the 12 months to remind the account holder. They publish the rate online and in branch. Statements now incorporate account specific interest rate information. Their online banking service tells the individual customer the rate for each account they hold. They issue an ISA Promise that says you can transfer an old ISA to a new ISA (so existing customers can always access new customer rates). They provide an online form to help change from one ISA to another. They have 24/7 call centres and branches open6 days a week across England, Wales and Northern Ireland.

The only thing they don't do is wipe your backside for you.

You may well get what you want out of complaining. But it's your own fault that the situation has arisen.

jem16

AmIBeingRobbed wrote: »

They don't have to know the rate in advance ..... surely they should quote the interest as base rate +/- a few per cent, not just say "variable" which can mean anything.

Variable means exactly what it says - the rate can vary.