MSE News: Halifax slashes Help to Buy ISA rate for new customers

Legacy_user

Halifax has cut the interest rate of its Help to Buy ISA from 4% to 2.5% for new customers...

Read the full story:
'Halifax slashes Help to Buy ISA rate for new customers '

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pinkdalek

It will soon lower the rate for existing customers just wait. Afterall it is advertised as a variable rate. They did the same with the JISA 6% to 4%.

The scheme though is not to be sniffed at, basically £50 return for every £200 you save towards your new house!

The rate is just a bonus in my opinion. As the article states it is still competitive in the market. Halifax probably cannot afford to keep the rate so high for its newer customers.

jimjames

And it was revealed on MSE first!

AlwaysLearnin

Existing thread here:

https://forums.moneysavingexpert.com/discussion/5454965

queserasera_2

I opened an isa online yesterday and received email containing my new account number etc. But I've not yet paid over the opening deposit, will I still be eligible for the 4% interest rate?

masonic

queserasera wrote: »

I opened an isa online yesterday and received email containing my new account number etc. But I've not yet paid over the opening deposit, will I still be eligible for the 4% interest rate?

Perhaps you could have made a case for getting the 4% rate if it was still being advertised on the website when you applied. However, we have our first report of the rate having been updated on the Halifax website at 6:37 AM yesterday (see existing thread above).

Flobberchops

MSE_Callum wrote: »

We believe the following Help to Buy ISAs are currently the best available:...

Get your facts straight Callum! Barclays Help to Buy ISA is 2.27% APR.

bowlhead99

Flobberchops wrote: »

MSE_Callum wrote:

We believe the following Help to Buy ISAs are currently the best available:...

Get your facts straight Callum! Barclays Help to Buy ISA is 2.27% APR.

Well, if Barclays is only 2.27%, which is worse than Santander's 4% and Virgin's 3% and Halifax's revised 2.5%, it's hardly one of 'the best available' on grounds of paying a high interest rate, is it.

In terms of features/ functionality, Barclays is only paying about a quarter of a percent more than Nationwide or Aldermore (about a fiver extra interest over the first year on the max deposits per month), yet doesn't offer the split ISA feature which those two do.

So, what sort of customer would want the Barclays account? It is not in the top three if getting a top rate of interest is important. It is not one that lets you put away a large total balance if that is important. For what sort of customer, other than a lazy Barclays customer, is it one of the 'best available' options?

I can see why MSE didn't include it in the list of accounts which they believe are the best available. In what world do you think it qualifies as the best available? Am I missing something? I'm not in the market for one of these accounts but just curious .

Flobberchops

bowlhead99 wrote: »

I can see why MSE didn't include it in the list of accounts which they believe are the best available. In what world do you think it qualifies as the best available? Am I missing something? I'm not in the market for one of these accounts but just curious .

I took the MSE article to be a comparison of top rates, which would place the Barclays HTB above the two offering 2%. True, it doesn't offer a split ISA, but as the rate is higher it strikes me as an omission. The article doesn't state it's limiting its scope to the top 3. *shrug*

Westie983

queserasera wrote: »

I opened an isa online yesterday and received email containing my new account number etc. But I've not yet paid over the opening deposit, will I still be eligible for the 4% interest rate?

If you opened the account on Tuesday 3rd (cant work it out from your post) then you will get the lower rate, as the rate dropped at 6am on Tuesday

What date/time is on your email? that will tell you the information about when the account was opened even if its not been funded.

Don't forget you have window of 21 days to make the initial deposit of up to £1000, followed by the regular payment.

mischievouspangolin

Hi. In your weekly email and news story you wrote:

Santander is now the only company to offer the top rate of 4% on its Help to Buy ISA

... and you feature Santander as the only 4% offering and Virgin Money as the only 3% offering in your Best Buys table.

What about Penrith BS at 4% and Tipton BS at 3%? Below the Best Buys table, you remember to mention them:

Other providers offering Help to Buy ISAs

There are no circumstances we can think of where these deals beat the ones above – but you’ve asked for a full list, so here it is:

Straight Help to Buy ISAs

• Penrith BS – pays 4% AER variable
• Tipton BS – pays 3% AER variable

What’s going on, MSE? Is this because your links to Santander and Virgin Money bring in revenue for you, while the building societies’ links don’t?

Please issue a correction to your weekly email and news story and feature the two building societies alongside Santander and Virgin Money. If you don’t, I and others will be forced to question your impartiality.

Thanks—and please, don’t do this again; you risk losing our trust.