ISA Direct Reward hits 100,000

Halifax has opened more than 100,000 new ISA Direct Reward accounts in just over six weeks as savers choose Halifax for their tax free investments. Launched on the 24th February, the ISA Direct Reward offers a guaranteed interest rate of 3.00% AER/Gross for the first year.

The ISA Direct Reward has been a hit with savvy savers and those looking to switch their ISA funds due to the guaranteed interest rate, paired with the flexibility to make deposits and up to four withdrawals over the year. Many competitor ISA deals for the 2008/2009 tax year were fixed rates, that do not allow customers to access their funds, or transfer in ISA balances held elsewhere. The Halifax product ensures customers receive a fixed rate of interest on their ISA balance, whilst also allowing them to make withdrawals, should they need to access their money.

Increased demand

Despite the fact that the UK is experiencing a financial downturn, evidence shows that it has not impacted our ISA savings habits. Halifax has experienced over 40 per cent uplift in new ISA account openings in March, compared to the same period last year.
Flavia Palacios Umana, head of Halifax Savings products, said: "We are delighted with the uptake of the ISA Direct Reward. Despite the challenging interest rate environment, we have been able to offer a competitive product that gives savers certainty of interest rate, with a degree of flexibility not provided by traditional fixed ISAs.

"Halifax encourages all savers to make the most of this tax year's allowance as early as possible in order to maximise the returns on these funds. The ISA Direct Reward is still available, and customers are also able to transfer in any ISA balances they may have elsewhere."