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.
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."
