Review of Halifax Fixed Rate ISA
ISAs have become less popular since the new PSA (Personal Savings Allowance) has allowed lower rate tax payers to save up to £1000 tax-free and higher rate tax payers up to £500. However, as your tax-free amount is much higher in an ISA, there are still opportunities for savers to make the most of their money.
What do Halifax offer?
Halifax offer a good deal with their ISA and, like RBS, offer a one year fixed term rate rather than a 3-5 year plan, like many other banks.
You are able to save and earn interest on between £500 and £20,000 in the same tax year. You will not be able to withdraw from or close the account before the agreed term is up; early account closure will result in the loss of interest. You will need your national insurance number before you apply.
Halifax offer:
- ISA transfers into our cash ISAs benefit from their ISA Promise. As part of this, they pay you interest while your funds are being transferred (provided they're free to move)
- The Halifax Savers Prize Draw, qualifying accounts earn a monthly chance of winning one of 3 top prizes of £100,000, if you register and hold £5,000 in qualifying accounts during the whole calendar month before the draw
- Online banking so you can view and manage your savings easily as well as phone and branch banking.
- A switch service. Existing ISA balances can be transferred into this account from another ISA provider, as long as you use their ISA Switching service. Previous tax year funds won't affect your current tax year allowance.
Why use an ISA?
Paying into an ISA is called ‘subscribing’. You can subscribe to one of each type of ISA each tax year, providing you do not subscribe more than your annual ISA allowance. The current annual ISA allowance is £20,000.
ISAs are a good idea whatever your savings goal. With certain types of cash ISAs, you have instant access to your money, which makes it a flexible way to plan your finances.
