Halifax Cash Isa Rip-Off

[Nationalist]

I saw an ad in the paper today for a Halifax Direct Reward ISA 3.0% variable for 12 months

I thought - I've got an ISA with them, I'll phone up and check I'm getting the 3%. Response, "No Sir, you're getting 0.5%."

Me: Can I have 3% please?

Halifax: Yes, *tap on keyboard*, done! (Mandatory product hard-sell omitted.)

Me: When does the 3% start?

Halifax: Today!

Me: Can I have it back-dated to the start of this new offer?

Halifax: No.

Me: What does "3.0% variable for 12 months" actually mean?

Halifax: (paraphrasing here, some 3rd degree was required...) It means today you get 3%, tomorrow you might get a different percentage, after 12 months you will definitely get 0.5%.

Anyway, 3% is actually OK for an instant (phone) access and no withdrawal limits. But you need to ask for it. It seems that internally the current offering is known as "Direct Reward 4", woe betide you if you're on DR 3 or ealier.

[danlee74]

I saw an ad in the paper today for a Halifax Direct Reward ISA 3.0% variable for 12 months

I thought - I've got an ISA with them, I'll phone up and check I'm getting the 3%. Response, "No Sir, you're getting 0.5%."

Me: Can I have 3% please?

Halifax: Yes, *tap on keyboard*, done! (Mandatory product hard-sell omitted.)

Me: When does the 3% start?

Halifax: Today!

Me: Can I have it back-dated to the start of this new offer?

Halifax: No.

Me: What does "3.0% variable for 12 months" actually mean?

Halifax: (paraphrasing here, some 3rd degree was required...) It means today you get 3%, tomorrow you might get a different percentage, after 12 months you will definitely get 0.5%.

Anyway, 3% is actually OK for an instant (phone) access and no withdrawal limits. But you need to ask for it. It seems that internally the current offering is known as "Direct Reward 4", woe betide you if you're on DR 3 or ealier.

After reading this the other day I checked on mine ... DR3 at 2.8 + 0.2 bonus for using a Halifax current account.

So, phoned up and, as you found, tap-tap-tap on the other end, I'm now on DR4 at 3.0 + 0.2 bonus for one year, so now on 3.2 Cash ISA, plus my £5 per month "reward". Decent in today's economic climate. I will watch that it doesn't get reduced tho ... sneaky sods! I suppose it is only a couple of quid difference between 3.0 and 3.2% but it's better off in my pocket rather than a banks bottom line!

Thank you for bringing this to my attention!!

[Nationalist]

I am very tempted to report them to the Advertising Standards Authority. Their ads say clearly "existinig customers get the new rate," but do NOT say that the existing customer must phone up and ask for it. The ads refer to the product as "Direct Reward" never mentioning the version number. If I see another ad in the newspaper I may well clip it and send it to the ASA. :angry:

[Pent Up]

I've just transferred to this ISA from Santander. As my right dropped to f all. This one has a bonus rate for a year too so remember the date and either transfer it or check your on the lenders top rate after a year.

[Pent Up]

I've just transferred to this ISA from Santander. As my right dropped to f all. This one has a bonus rate for a year too so remember the date and either transfer it or check your on the lenders top rate after a year.

Or transfer to someone else, I think nationwide do a 3% too. Transferring is easy nowadays and a lot of lenders back date your interest. Took me less than a week to move from Santander to Halifax.

[danlee74]

Or transfer to someone else, I think nationwide do a 3% too. Transferring is easy nowadays and a lot of lenders back date your interest. Took me less than a week to move from Santander to Halifax.

I usually use moneyfacts.co.uk to make sure that I am getting a decent rate with ISA's / savings / current accounts ... looking at Cash ISA's at the mo there is:

AA Instant Access ISA @ 3.35% *NO TRANSFER IN

Santander Flexible ISA @ 3.30% *NO TRANSFER IN

Barclays Golden ISA @ 3.25% *NO TRANSFER IN

The problem with ISA's is that not all accept transfers in, at least not the better payers of interest ... true Nationwide have a 3.10% rate with the transfer in option but I'm happy that at 3.20% I have the best rate I can get at the moment for the majority of my savings! Hopefully this will change tho will all these base rate increases that are coming up!!

[Bear in mind]

I usually use moneyfacts.co.uk to make sure that I am getting a decent rate with ISA's / savings / current accounts ... looking at Cash ISA's at the mo there is:

AA Instant Access ISA @ 3.35% *NO TRANSFER IN

Santander Flexible ISA @ 3.30% *NO TRANSFER IN

Barclays Golden ISA @ 3.25% *NO TRANSFER IN

The problem with ISA's is that not all accept transfers in, at least not the better payers of interest ... true Nationwide have a 3.10% rate with the transfer in option but I'm happy that at 3.20% I have the best rate I can get at the moment for the majority of my savings! Hopefully this will change tho will all these base rate increases that are coming up!!

I can't believe it's impossible to get an above inflation rate on a savings account. Are these seriously the best rates on offer?

Non isa accounts loose money and then you get taxed. What a kick in the guts!

Is anyone seeing any better products coming to market?

[danlee74]

I can't believe it's impossible to get an above inflation rate on a savings account. Are these seriously the best rates on offer?

Non isa accounts loose money and then you get taxed. What a kick in the guts!

Is anyone seeing any better products coming to market?

The accounts I have noted were all instant access ... apparently there are inflation beating ISA accounts (see http://www.bbc.co.uk/news/business-12819220) but I guess these are either fixed term (1-, 3- or 5-year) or notice accounts (30-, 60-, 90-day). This is not very good if you feel the need to have access to your own cash as and when you please!

It is not a good time to be saving under the current economic conditions but I do not feel that I have a choice. I am not the kind of person to blow my hard earned on tat as I see all around me and have always lived within my means. That said, I sometimes wish I had the brass neck to go out and waste as much as I could get my hands on living the high life before going bust, again as I have seen all around me. Perhaps someone could start a class on "How to be economically idiotic"?!! Or is Merv trying to lead by example?!

EDIT: typo

Edited March 22, 2011 by danlee74

[Bear in mind]

The accounts I have noted were all instant access ... apparently there are inflation beating ISA accounts (see http://www.bbc.co.uk/news/business-12819220) but I guess these are either fixed term (1-, 3- or 5-year) or notice accounts (30-, 60-, 90-day). This is not very good if you feel the need to have access to your own cash as and when you please!

It is not a good time to be saving under the current economic conditions but I do not feel that I have a choice. I am not the kind of person to blow my hard earned on tat as I see all around me and have always lived within my means. That said, I sometimes wish I had the brass neck to go out and waste as much as I could get my hands on living the high life before going bust, again as I have seen all around me. Perhaps someone could start a class on "How to be economically idiotic"?!! Or is Merv trying to lead by example?!

EDIT: typo

Thanks for the advice. I guess I need to forget about RPI and CPI and concentrate on HPI. After all I am saving for a house.

There is no way I could lock my money in for 3 or more years as you never know what around the corner.

It does seem the longer I save the harder it is to spend and my savings are being inflated away to help those who did nothing to help themselves. Or should that read helped themselves to everything.

[joe_]

I am very tempted to report them to the Advertising Standards Authority. Their ads say clearly "existinig customers get the new rate," but do NOT say that the existing customer must phone up and ask for it. The ads refer to the product as "Direct Reward" never mentioning the version number. If I see another ad in the newspaper I may well clip it and send it to the ASA. :angry:

Just transfered to an ISA with them, and I'm currently on 2.8%, so I'm going to ring up - every penny counts!

[TylerDurden]

I rang last week to be upgraded to the higher interest rate. They said it would take a few days as they were busy, but i've just checked my rate online and its saying 0.5%.

I was on 2.8% and moving to 3.2%. She did mention they would have to send out 2 contracts, One for going onto there standard rate and one for moving to the higher rate, but said i was immediately on their higher rate. i think i need to ring them.

[danlee74]

I rang last week to be upgraded to the higher interest rate. They said it would take a few days as they were busy, but i've just checked my rate online and its saying 0.5%.

I was on 2.8% and moving to 3.2%. She did mention they would have to send out 2 contracts, One for going onto there standard rate and one for moving to the higher rate, but said i was immediately on their higher rate. i think i need to ring them.

I got the same as I am moving from DR3 to DR4 and called when it fell to 0.13% interest!! Apparently they have to put it into an intermediate account and they are very busy at the moment ... I guess there are not many decent saving rates out there.

I'm giving it another week!

[Number79]

For anyone under 35 santander has a housesaver account that pays 5% on balances upto £50k I think. Even after tax that is better than any isa now.

[danlee74]

For anyone under 35 santander has a housesaver account that pays 5% on balances upto £50k I think. Even after tax that is better than any isa now.

Sadly I am 37 .

Could be a good scheme to those of 35 and below tho.

[Bear in mind]

For anyone under 35 santander has a housesaver account that pays 5% on balances upto £50k I think. Even after tax that is better than any isa now.

Hold on thats age discrimination. Can they do that? Better rates for kids accounts fair enough but under 35s?

[Cozza]

After reading this the other day I checked on mine ... DR3 at 2.8 + 0.2 bonus for using a Halifax current account.

So, phoned up and, as you found, tap-tap-tap on the other end, I'm now on DR4 at 3.0 + 0.2 bonus for one year, so now on 3.2 Cash ISA, plus my £5 per month "reward". Decent in today's economic climate. I will watch that it doesn't get reduced tho ... sneaky sods! I suppose it is only a couple of quid difference between 3.0 and 3.2% but it's better off in my pocket rather than a banks bottom line!

Thank you for bringing this to my attention!!

Correct me if I am wrong but there seem to be conditions attached to moving your ISA to DR4, more particularly that you lose 180 days' interest, as per below.

https://www.halifax.co.uk/savings/accounts/cash-isas/isa-direct-reward/redesignation/default.asp

"I confirm my instructions to transfer the total balance, including interest, in the above numbered account to a Halifax ISA Direct Reward. If I am closing a fixed rate Halifax ISA Saver I understand that I will lose an amount equal to 180 days' interest, calculated on the rate at which interest is paid on my account I agree to be bound by the Deposit Account conditions and the special conditions for the Halifax ISA Direct Reward.

I understand that interest is paid on 5th April and at the end of the reward period. For Halifax ISA Direct Reward accounts funded after 6th April 2011, interest will be paid at the end of the reward period".

Edited April 8, 2011 by Cozza

[19 year mortgage 8itch]

Looking at transferring the wife and I's ISA to Halifax DR4. To get the extra 0.2% and £5 a month from a current account, do you really have to get your wages put in the account or will a standing order from my existing accout do?

Edited April 8, 2011 by daiking

[christhpc]

Hold on thats age discrimination. Can they do that? Better rates for kids accounts fair enough but under 35s?

I'm sure the EU will rule against these things in the end. And SAGA accounts for the over 55s If that's what you really want?

In my case, even as someone eligible for this Santander account they can shove it, the bunch of thieves.

[danlee74]

Correct me if I am wrong but there seem to be conditions attached to moving your ISA to DR4, more particularly that you lose 180 days' interest, as per below.

https://www.halifax.co.uk/savings/accounts/cash-isas/isa-direct-reward/redesignation/default.asp

Hmmm, my transfer has taken place and I did not notice any missing interest ... the calculation I used pretty much hit the nail on the head with what I received so I am more than happy that I have 'lost' nothing whereas I am on a better rate now (albeit being a measly 0.2% better!) ... however, I moved between DR3 and DR4 so I think that is a different product to the basic cash ISA which is the base product which you'll go onto if you don't keep being a "rate tart"! I don't really know so you'll have to do your own calcs but like I state, I am happy that I lost nothing during the transfer.

Looking at transferring the wife and I's ISA to Halifax DR4. To get the extra 0.2% and £5 a month from a current account, do you really have to get your wages put in the account or will a standing order from my existing accout do?

You have to "fund" the account with £1,000 per month - how you do that I think is entirely up to you ... it has been a while since I changed and for ease I used their account switching team which was smooth, and happily I am now getting a crisp fiver every month and an extra 0.2% on my savings.

PS: I do not work for Halifax despite all the praise above and if/when a better option appears I will change accounts quicker than a Premershi* footballer changes club allegiance for an extra buck!

Also, I note that Santander have an account which pays 5% on credit balances (up to about £2,500?) as well as a £100 bonus on account opening, again on the proviso that it is "funded" with £1,000 per month. Can anyone vouch for this? I am considering opening an account to pay my wages into and then transferring £1,001 into the Halifax account to keep getting my current 'Rewards'? Yes, I am a complete rate tart!

[19 year mortgage 8itch]

You have to "fund" the account with £1,000 per month - how you do that I think is entirely up to you ... it has been a while since I changed and for ease I used their account switching team which was smooth, and happily I am now getting a crisp fiver every month and an extra 0.2% on my savings.

PS: I do not work for Halifax despite all the praise above and if/when a better option appears I will change accounts quicker than a Premershi* footballer changes club allegiance for an extra buck!

****** it, me and the wife have done the dirty with Halifax to get everything they offer, joiner's bounty, 5 quid a month and the extra 0.2% on our DR4 ISAs (transferring everything in). No point going to any sort of trouble and looking a gift horse in the mouth.

As much as I dislike Halifux, grrr.

Edited April 11, 2011 by daiking