Are Halifax Cash ISAs Fraudulent?

jimjames

AmIBeingRobbed wrote: »

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.

I am completely struggling to understand what your problem is. The text you have quoted makes it very clear what the rate will be after 1 year and the bonus is on top of the normal rate. Obviously if base rates change then this could vary but as they haven't altered for more than three years this is pretty irrelevant in your case.

If you don't want to constantly have to chase the best rate then don't take out an account that pays such a bonus - but realise you will get a lower rate overall. This is one such example, compare the rate to the best ISA and you will see
http://www.hl.co.uk/investment-services/vantage-cash-isa

Many people prefer not to do this so they can get a better income from their savings by chasing the best rates each year. You can't have your cake and eat it.

mgdavid

haven't read the whole thread but Not guilty;

and the OP is hereby charged with Wasting Police Time...

coastline

Years ago I think there were only a handfull of accounts in a building society....instant ...30 day...60 day...120 day...fixed etc..
So maybe this practise has only emerged in the last decade or so...which could also be said about switching providers in utilities etc...they rely on easy going customers give them an easy time...
If I'm being honest I'd say its not fair...but thats the way it is ..and its not going to change in a hurry..
You've just got to keep an eye on everything....just wait until your car insurance turns up..;)

gocat

Opened a fixed rate Halifax earlier this month. Just noticed these words
"Please note:
Rates of interest are subject to change.
Interest rate effective from 0.00am on 12th March 2012.
Interest rates are fixed on account opening."

Seems a bit contrary to me i.e. rates are subject to change but its a fixed rate ISA :think: Im sure someone can put it into layman terms for me !

Also opened a direct reward ISA this time last year and just got a letter saying the reward period on my account is coming to an end but Im sure I got a letter earlier this year inviting me to transfer that to a 3.7% fixed rate and when looking at my online account, it does say 3.7%, so wondering what is going on here.

I guess if the rate does drop to standard variable rate I can always transfer it to my fixed rate/subject to change (delete as appropriate) ISA :whistle:

*sigh* no matter how hard I try to digest the small print I always get caught out somewhere.

Linton

If it's a fixed rate ISA then the rates are fixed, no risk of change while its in force. But of course any fixed rate deal is of limited duration stated at the start, typically in whole years up to 5. So it sounds like your fixed rate deal is coming to an end and you need to arrange a replacement.

The longer the duration the better the interest but you probably cant get the money out before the end no matter what the emergency is, other than death.

gocat

Sorry forgot to mention it is the 3 year fixed rate one I took out earlier this month. That's why I was surprised at the wording I mentioned in previous post. "Please note:
Rates of interest are subject to change.
Interest rate effective from 0.00am on 12th March 2012.
Interest rates are fixed on account opening."

Linton

gocat wrote: »

Sorry forgot to mention it is the 3 year fixed rate one I took out earlier this month. That's why I was surprised at the wording I mentioned in previous post. "Please note:
Rates of interest are subject to change.
Interest rate effective from 0.00am on 12th March 2012.
Interest rates are fixed on account opening."

Then I guess it is standard text that they always include when talking about rates and perhaps warning you that tomorrow you may not be able to get the same deal. As I said Fixed Term/Fixed Rate deposits are exactly that.

cos_2

opinions4u wrote: »

I once had a discussion with a Scotsman about that verdict. I told him I thought it was a great idea. He spent half an hour explaining why I was wrong and how it should be scrapped! If it ain't proven, it's innocent.

Not proven = "Not guilty, and don't do it again!"

bikeman

Check your Halifax ISA carefully.

2 years ago I applied for a fixed rate cash ISA with the Halifax. By the time they processed my application they had reduced the interest rate by 0.5%. I had to fight for a long time to get the rate changed.

This year with the ISA maturing I completed instruction to move to a new 3 year fixed account and guess what.... the !!!!!!s have only done it again and opened the account at a lower rate. So I've now got to fight them all over again.

I wont get fooled a 3rd time.

Watch the Halifax - they are a bunch of shysters.

Gordon_the_Moron

Read the first two pages of this thread and can't be bothered to read the rest.

They are 100% not guilty of fraud, fact! (or in my opinion any kind of unethical practice where bonus rates are concerned, its clear when you start what you get, if you can't be bothered to move after that time get the best clean account)

They are however in my experience guilty of being a bunch of inept halfwits when it comes to customer service (thats putting it politely!) how on earth they don't come behind Santander by a huge margin in the customer service polls I'll never know!