Halifax Online Tracker

porsmitj2

I opened an online tracker in June when the interest rate was 1.09%.
I have just noticed that it has gone up to 1.95%.
Because I have 50000 invested it is worth me taking a hit of 175 days of interest to close the original account and open up a new one.

This is where the fun begins! Although it is an online account and I opened it online, it can't be closed online, it has to be closed by visiting the branch. However even though I can do it myself at home, the branch can't open an account without someone who has special training - there is only one such person locally. They are fully booked up for the next two weeks. As part of the arrangements for opening the account I will be required to watch a video - I was told this was government regulations!

If you are thinking why don't I open an account myself and then get the branch to close the existing one and transfer the money across - that can't be done either - I have asked! It would mean me having two accounts and that isn't allowed

Has anyone else experienced this?

Westie983

Can it be closed on the telephone?

porsmitj2

No! Has to be done in the branch!

Westie983

Branches should be running a on spec diary and a booked appointments diary so you should be able to walk in and close and reopen, in one appointment or alternative is to just close in branch at the counter or help and advice turn reopen online yourself.

ManAtHome

porsmitj2 wrote: »

... it has to be closed by visiting the branch. However even though I can do it myself at home, the branch can't open an account without someone who has special training

Is the problem around opening a new online account in branch? Have you asked if you can close the existing one and leg it with the cash (probably counter cheque), deposit this in your bank, then open a new Halifax tracker.

MDMD

Westie983 wrote: »

Can it be closed on the telephone?

I made a complaint when I tried to close one over the phone and was told not possible (quite ridiculous really - they must have access to the same systems!) . Halifax have quite a good complaints policy in which they often bung you £25 or so to go away. It boosted my returns a little bit!

They said if the accrued interest is under £5 some online accounts can be closed online. Otherwise it's branch only.

colsten

The terms of the Halifax Online Tracker clearly state

No withdrawals allowed. Early closure permitted in branch. If you close your account early, you will lose an amount equivalent to:........

MDMD, not sure what's there to complain about once you have taken out the account and agreed to the T&Cs.

Westie983

Yes any fixed accounts have to be closed in branch as they could have penalties to apply.

Other non fixed accounts can be closed online by logging into online banking and click close account.

I think because the online tracker bond is a fixed 18 month product there is a loss of interest penalty to be applied and therefore can't be closed unless in branch.

Close account in branch at the counter no need for a appointment and then reopen online yourself then you don't need to sit through a hour appointment, handy if you know what you want to open.

colsten

OP, Charter Savings Bank pay 2.1% in an 18 month bond: http://www.chartersavingsbank.co.uk/Products/FixedRateBond

24 months bonds are paying even more. Check comparison sites.

But don't throw the towel every time someone comes out with a higher rate, as you will pay penalties every time you do.

As an aside, you could get 3, 4 and 5% for £50K in current accounts, with no penalties for early withdrawals.