Transferring ISA away from Halifax

Mic

I moved my ISA back to the Halifax last year afer getting better deals elsewhere in previous years. The interest rate was the best I could find and I was really pleased to receive my interest. I added further funds (in what I assume was this financial year) and a few days later received a letter saying that the rate was only for a year and it is now only 0.5%. I was quite annoyed to say the least considering they could have informed me of this before I paid in for this year! Anyway, my question is this: I understand that you can only pay into one cash ISA per financial year. As I have paid some money (not the full allowance) into this one already, does this mean I am stuck with this ISA for the rest of the year or can I transfer? Many thanks for your advice in advance!

Michelle

innovate

Halifax will have re-informed you some 4 weeks before your interest rate got lowered. They originally told you over 12 months ago - right when you signed up for the ISA - that the rate will just hold good for 12 months.

It is now totally normal that rates only last for a certain amount of time. Whilst this can be considered a bit of a PITA, diarising the date of change, and transferring to a new ISA isn't such a big job. You would expect that you review your finances at least once a year, anyway.

If you have an instant access ISA, which by the sound of your post you do, you can transfer it anytime you like to another ISA. The only things to bear in mind are that funds deposited in the current financial year must be transferred in their entirety, and that you must ask the new ISA provider to make the transfer.

pqrdef

If you phone Halifax, they will probably re-designate your account, which will restart the bonus interest clock for another 12 months at a reasonable rate. You can then decide how keen you are to become a rate tart.

Sparky47

pqrdef wrote: »

If you phone Halifax, they will probably re-designate your account, which will restart the bonus interest clock for another 12 months at a reasonable rate. You can then decide how keen you are to become a rate tart.

Or you can use their online form to re-designate to an ISA Saver Online, currently paying 2.75%.

Gordon_the_Moron

Never try and make the transfer yourself by opening another ISA and withdrawing funds and re-depositing as it will use up what is left of this year's allowance (even if you were to open another ISA with Halifax and transfer directly between the two) the provider must always do it for you.

As it is now you have a few options

1. Leave the account as is (earn 0.5%) bad idea

2. Re-designate it to an ISA Saver Online with Halifax (do it yourself as has been suggested above or go into a branch and they can do it for you) earning an OK 2.75%

3. Transfer to a better instant access rate elsewhere see
http://www.moneysavingexpert.com/savings/best-cash-isa
Up to 3% instant access available with no short term bonuses and 3.3% with a year long bonus if you are willing to move again in a years time.

4. Transfer/re-designate to a fixed rate account (see the best cash ISAs page linked above, they're further down the page) only problem with this is they usually only allow one deposit so if you put in half of this year's allowance, you waste the other half, you can't make another deposit there nor into another account!