ISA Savers £6.5million Better Off With Halifax

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Since launching the Halifax Cash ISA Promise, Halifax has increased the ISA pots of UK savers by an extra £6.5 million in interest. ISA savers have transferred more than 200,000 ISA accounts to Halifax in the last six months, taking advantage of the best buy rate for ISA transfers coupled with interest paid from the first day Halifax receives the completed ISA transfer form.

We are incredibly pleased that the Cash ISA Promise has been so well received by customers, as it obviously addresses a real need. It is clear that ISA savers across the UK are already feeling the benefit to the tune of £6.5million.

The Halifax Cash ISA Promise, which came in to effect on 2nd October 2010, challenged the market by addressing key issues customers face during the lifetime of their cash ISA – in particular, losing the benefit of a better deal due to delays in the transfer process.

All customers switching their existing cash ISA to Halifax now earn interest from the first day their completed application form is received either in branch or by post. This means that customers switching to a better interest rate are not be disadvantaged by the time taken to transfer their cash ISA from their current provider. The Halifax Cash ISA Promise means that customers will earn the new rate they are switching to throughout the transfer process.

Increased demand
Since the launch of the ISA promise six months ago, new ISA openings in Halifax are up 180% on the same period a year before. Seeing the highest ever transfers in on 21st March, it shows that in the current economic climate, the UK population is focusing on saving and making the most of their ISA allowances.

Market leading rate for ISA transfers
Halifax has recently increased the rate on the Halifax ISA Direct Reward which offers a best buy variable interest rate of 3.00% AER/Gross for the first year, or 3.20% AER/Gross for customers with a qualifying Current Account*.

The Halifax ISA Direct Reward has been a hit with both savvy savers looking to make the most of their ISA allowance for the current tax year and those looking to switch their ISA funds. The variable interest rate is paired with the flexibility to make unlimited deposits** and withdrawals over the year. In addition, this account is available to both new and existing customers and allows the transfer in of previous year's ISAs offering customers the ease of managing their ISA savings in one place.

Russell Galley, Managing Director of Savings, said:

"We are incredibly pleased that the Cash ISA Promise has been so well received by customers, as it obviously addresses a real need. It is clear that ISA savers across the UK are already feeling the benefit to the tune of £6.5million.

"We are leading the industry to improve the transfer process between providers which is vital. We have already demonstrated our commitment to improving the transfer process for ISA savers and encourage other providers to follow our lead."

Notes to editors

Halifax Cash ISA Promise
The Halifax Cash ISA Promise offers new and existing cash ISA customers a simple three point commitment. With effect from the 2nd October the Cash ISA Promise forms part of cash ISA terms & conditions. It reads, as follows:

  • When you switch your cash ISA to us we will not wait for your current provider, we pay interest from day one of receiving your completed transfer application.
  • We’ll keep you informed:

-while switching your cash ISA to us
-when your reward or fixed rate cash ISA offer is coming to an end
-of your cash ISA interest rates

  • All Cash ISAs will be available to all customers, new and existing

These promises are part of our agreement with you. Only Halifax does all this.

Halifax ISA Direct Reward features:

  • A variable interest rate of 3.00% (AER/tax free) for 12 months from date of first deposit
  • Additional 0.20% AER/tax free for customers who hold their main bank account with Halifax, taking the rate to 3.20% AER/tax free
  • After 12 months as previously announced we will notify customers that their rate has come to an end and they will be invited to review their ISA arrangements to make sure they have the best deal available
  • Transfers in, of current and/of previous years ISA funds accepted
  • No withdrawal penalties
  • Annual £5,100 ISA limit applies for 2010/2011 tax year, £5,340 for 2011/2012 tax year

*Halifax Current Account customers who meet one of the following conditions are eligible to receive an additional 0.20% AER on their savings accounts:

  • Pay £1,000 or more into their Halifax Current Account each month OR
  • Hold an Ultimate Reward Current Account OR
  • Switch their current account to Halifax using the dedicated Switching Service and pay in £1,000 or more each month or open an Ultimate Reward Current Account
  • Additional 0.20% AER/gross pa fixed for 12 months, calculated and paid separately after the end of the 12 month period in respect of each qualifying variable rate savings account held with us.

**Up to the maximum annual ISA allowance.

Halifax ISA case studies available on request.

Press Office
Claire Miller    01422 332833 / 07900 276400
Deepa Bose    0207 356 1405 / 07900 276400


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