RSS Feed

Related Articles

Related Categories

Halifax rewrites fixed rate ISA rules

25th March 2014 Print

With 7.5million savers expected to fund new ISA accounts in the first three months of the tax year, Halifax has rewritten its fixed rate ISA rules to ensure these early funders don't miss out on the increased £15,000 ISA limit.
 
Under current terms and conditions Halifax fixed rate ISA savers have 60 days in which to fund their accounts. Responding to last week’s budget Halifax has now tripled this funding window to 180 days for customers opening their accounts before the NISA changes take effect. Therefore a customer taking out a fixed rate ISA can benefit from tax free savings from the beginning of the tax year and still be in a position to top up to the £15,000 limit when it becomes available in July 2014.
 
Richard Fearon, Head of Halifax Savings, said: “Halifax is NISA-ready. As the UK’s home of tax-free savings, we have swiftly responded to the NISA news and we have changed the rules so our customers can take advantage of the increased £15,000 limit. Savers will be able invest in our market-leading ISAs from the very beginning of the tax year, use their full allowance when it becomes available in July 2014, and have the option of topping up their fixed rate ISAs until the end of September. It’s easy to top up our variable rate ISAs, which are open to deposits at any point in the tax year.
 
“We’ve been calling for changes to cash ISA limits, so we’re delighted with the new allowance. By ensuring that our ISA savers are able to take advantage of their entire new allowance we believe this can help substantially in building the UK’s savings culture.”
 
Best buy ISAs from Halifax
 
Halifax launched its ISA range earlier this month, it includes an 18 month fixed rate ISA paying 2%, a 2 year at 2.05% and a three year at 2.25%. Savers can choose to have their interest paid monthly or yearly on the full range. 
 
The Halifax Junior ISA remains market leading two years after its launch, continuing to offer the same best buy rate of 6%.
 
Halifax ISAs benefit from being covered by the Halifax ISA Promise, which means that Halifax pays interest to customers from the day their application is received. This has resulted in customers saving millions of pounds in interest that would otherwise have been lost.
 
Richard continues:
 
“It is possible to get the best of all worlds – we believe the Halifax ISA proposition is the best available on the high street. We offer savers best buy rates with the option to transfer in from other providers with interest paid from the day an application is received. In addition, qualifying customers have the chance to win £500,000 in our forthcoming Halifax Savers Prize Draw. Halifax is also extending its opening hours in the vast majority of branches at tax year end.”
 
Over £17 million has already been given away as part of the Halifax Savers Prize Draw to more than 29,000 people since its launch in December 2011.
 
Halifax giving ISAs extra
 
Halifax ISA customers receive more from their ISA:

Choice from a range of best buy ISAs
Option to transfer funds from other providers
Rules amended to triple funding window allowing all to benefit from the introduction of NISA
Interest paid from the date of application
Opportunity to enter the Halifax Savers Prize Draw
Fully supported through all channels and with extended opening hours in branches over tax year end.