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    Hi there,

    For the past 3 years I have been saving in an ISA with HSBC. However, the interest rate is rubbish.

    Santander are doing 3.3% (though advertising 3.5% in store) but not allowing transfers from previous years. Halifax are offering 3.0% but allowing in transfers from previous years.

    Now if I were to transfer my past ISA savings to Halifax, would all of those 3 years all receive 3.0% interest over the year? Or is that only for the £5,340 that I put in this year? If the answer is that only this year receives 3.0%, what interest will the previous years get? I will phone and ask but I'm about to go on holiday, so cannot do it for another week.

    This next part may sound confusing, but bear with me. Am I able to transfer my past 3 years of my ISA over to Halifax WITHOUT setting up a new ISA quota this year with them? Could I in effect transfer over my existing ISA savings to Halifax, but put this year's maximum amount in a Santander ISA?

    Many thanks for anyone that can help.

    Please QUOTE me if you respond. I'm very grateful for all knowledgable responses.
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    (Original post by tony_ron)
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    If you transfer your previous years' ISA subscriptions to Halifax you'll get 3.0% on the entire balance (you could also get an additional 0.2% if you have a 'qualifying' current account with them and meet a few other conditions, taking the rate to 3.2%).

    In fact, your plan sounds like exactly what I'm doing. I have previous years' subscriptions currently held with Nationwide and Santander. I'm getting both of these balances transferred to a new ISA with Halifax, to get the 3.2%. For 2011/12, I'm then subscribing to a new ISA with Santander and paying in the £5,340 allowance, to get the 3.3% rate on that. It's a little admin-heavy, but should work if you want to get the higher rate - even if it is only an additional £5 or so. There's also the benefit that with Santander, the interest rate automatically tracks bank rate, which I don't think the Halifax rate does.

    When opening the Halifax ISA, you'll note that part of the online declaration states that you're going to subscribe to a new ISA with them for 2011/12, but having queried this with them they've confirmed that this won't apply if you don't actually pay in 'new' money for the year.

    As a note, the 3.5% rate with Santander relies on you having a qualifying current account with them (similar to the way that the Halifax rate works).
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    I see. That's really helpful, thank you. I think I may just transfer it all to Halifax. Setting up a whole extra account for an extra £5 interest probably isn't worth it - I hadn't thought about it like that. So yeah, think I'll transfer it all to Halifax.

    Do you happen to know if I need to set up a current account with them? And can I access it all online?
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    (Original post by tony_ron)
    I see. That's really helpful, thank you. I think I may just transfer it all to Halifax. Setting up a whole extra account for an extra £5 interest probably isn't worth it - I hadn't thought about it like that. So yeah, think I'll transfer it all to Halifax.

    Do you happen to know if I need to set up a current account with them? And can I access it all online?
    Yeah, that's fair enough. I already have some money with Santander, so opening the new account there isn't *too* much hassle for me.

    There's no need to open a current account with Halifax to open their ISA, though you can get the additional 0.2% on the interest rate if you do and pay in £1,000 per month. You can definitely access and manage the account online - in fact, that's the focus of the account and it *can't* be managed (except for deposits) via branches.
 
 
 
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