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saver776

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eskbanker

I don't believe it's possible to convert a non-HTB ISA into an HTB ISA, so suggesting a non-HTB ISA as a stepping stone halfway through a transfer definitely doesn't sound right.  If they are claiming that they can do this then make sure you have it in writing so that you have some evidence of what they're proposing for when it all goes wrong and you're needing to get them to compensate you, or better still go back to them and insist that it's done properly (HTB to HTB directly) or not at all!

garfield33

Hello, that's what they did for me and it went smoothly, took about 10 days from me phoning to it all being complete. Now showing in my online banking as a H2B ISA, and I also have letters saying the same.
Only difference is I didn't have to open anything myself - they opened the 'normal' ISA while I was on the phone, and then all the converting/transferring happened in the days following.

Alexland

A previous poster (please don't ask me to find the thread) mentioned that Halifax have a software limitation that stops them opening new HTB ISAs and so ask customers to open new variable ISAs which they then convert into a HTB ISA before any contributions are made. It was a while ago so Halifax have probably been operating this process for a while now. To be super-sure you could send a secure message checking this is their correct process for transferring into their HTB ISA and then if their reply is clear print/screenshot your own file copy. That way if you follow their instructions and it doesn't work then you will have grounds for complaint and remedy as ISA Manager error.

garfield33

Just to add - they opened the 'normal' ISA, it converted to a HTB a couple of days later while it was still zero balance, and then they transferred in the money from the HTB ISA from the other bank (Santander in my case)

eskbanker

Alexland said:

A previous poster (please don't ask me to find the thread) mentioned that Halifax have a software limitation that stops them opening new HTB ISAs and so ask customers to open new variable ISAs which they then convert into a HTB ISA before any contributions are made.

garfield33 said:

Just to add - they opened the 'normal' ISA, it converted to a HTB a couple of days later while it was still zero balance, and then they transferred in the money from the HTB ISA from the other bank (Santander in my case)

That sequence of events at least sounds more plausible, i.e. convert non-HTB ISA into HTB ISA and then transfer the old HTB ISA into a valid new one thereafter, but OP said they'd transfer first and then convert ("They had me open a variable ISA on site, which they have then had me call in to transfer my current HTB into and said they will convert is into a HTB once transferred") which makes no sense to me!

garfield33

I received a letter today, on 16th March this account is going from 1.7% on the whole balance to 1% up to £12,000, and 0.05% above that...
I will have a look around to see if there are any other options, but I think I will stop paying in my monthly £200 (I'm above the £12,000) - taking a gamble that things won't improve enough for me to regret not having the maximum possible amount in there. I will probably also move out the ~£1.4k that will be in the lower tier of money and put that somewhere marginally higher

Ed-1

garfield33 said:

I received a letter today, on 16th March this account is going from 1.7% on the whole balance to 1% up to £12,000, and 0.05% above that...
I will have a look around to see if there are any other options, but I think I will stop paying in my monthly £200 (I'm above the £12,000) - taking a gamble that things won't improve enough for me to regret not having the maximum possible amount in there. I will probably also move out the ~£1.4k that will be in the lower tier of money and put that somewhere marginally higher

..........

MDMD

Ed-1 said:

garfield33 said:

I received a letter today, on 16th March this account is going from 1.7% on the whole balance to 1% up to £12,000, and 0.05% above that...
I will have a look around to see if there are any other options, but I think I will stop paying in my monthly £200 (I'm above the £12,000) - taking a gamble that things won't improve enough for me to regret not having the maximum possible amount in there. I will probably also move out the ~£1.4k that will be in the lower tier of money and put that somewhere marginally higher

..........

I suspect HSBC will drop their rate soon, unless it’s bringing in sufficient mortgages businesses to offset the cost.

garfield33

Thanks both, I had a look at this last night - I don't want to set up a new HSBC current account (hoping to buy this year and want to avoid any "footprints" (and as you've said, they're likely to drop their rates too), and sadly I don't live anywhere near Newcastle, so I think I'll stay put for now.