Halifax Direct Reward ISA

A question about : Halifax Direct Reward ISA

I am going to transfer my current ISA. I have just looked at Halifax Direct Reward ISA paying 3% which is guaranteed for one year.You can make 4 withdrawals a year and transfer to another provider during the one year if you wish and still get 3% interest until the day you transfer.This account gives a guaranteed rate for one year and you can still transfer if you want. I am concerned I have not understood it properly as it gives you the best of both worlds a reasonable rate plus able to transfer if you see something better in 6 months.

Best answers:

• No, everything you have said is correct.
• I just tried to open one of these online. My intention was to (a) transfer in 2008/09 cash ISA from another provider, and (b) subscribe new cash in 2009/10.
  The info on the website makes it quite clear that the initial funding can be by way of a transfer from another provider. Yet the online system rejected the application because I had ticked "yes" to the question "have you subscribed to another cash ISA in the current tax year".
  Is this just Halifax's general standard of incompetence, or have I overlooked something obvious?
• I went into branch and they 'redesignated' my old ISA into this new one - should be able to do the same on the phone aswell - I don't think you can do ISA transfers online
• I am in the same position, answered the questions correctly/honestly and was told couldnt open the account...on looking into it a little more it says that you have to open the account first then transfer in...but wouldnt that mean you have two isa's open at the same time and isnt that against the rules? I know I could call and ask the Halifax this question but to be honest you can never be too sure of the honesty of the answer
• thanks, have opened this now, have filled in the transfer form but NS&I (current provider) have given me sort code/account number and a reference number to quote, on the transfer form there is no space to put the account reference number-I have written it in anyway..will this be ok or are they going to reject the form when it gets to the transfer team?
• To anyone who has just set this up:
  If you were NOT an existing Halifax customer, did you have to set up some sort of online banking details so that you can access the account online, or do you get sent password stuff in the post?
  This is the ISA that I think I will transfer into, just getting my head round it all!
• When I set up with Halifax a couple of months ago they sent me username and temp password in post and I then set the rest up through that.
• Cheers.
  You are helping me out alot today, Loko!
• What happens to the ISA after the first year? Can you transfer out for a better rate with no penalty?
• Yes, the Halifax Reward ISA in particular
• From what I can understand from their site you can make 4 withdrawals a year. Closure counts as a withdrawal, transfer closes the ISA. So I am assuming transferring is classed as a withdrawal. Which means you can do it at anytime, however if you have already made 4 withdrawals since opening I am not sure what happens (more than likely lose interest)
• Thanks. I can't do anything till my FRISA matures on 6th April, hopefully, the Halifax Reward ISA will still be there then:confused:
• after the year it moves into their standard isa (cant remember what they call it) but pretty poor rate so you would really need to move it after a year- sooner if rates pick up