ISAs at the Halifax | ISA guides

ISAs at the Halifax January 6

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Individual Savings Accounts (ISAs) are renowned for being the tax-free way to save up to £7,000 in a given financial year - and Halifax is one of the high-street banks to offer a well-known set of services which have proved extremely popular with customers.

Its mini cash ISA is its primary offering. Cash ISAs allow the customer to invest in Building Society deposits, UK and European authorised Bank deposits, cash unit trusts or National Savings while Mini ISAs allow customers to invest in just one of these components on an annual basis.

The fixed-rate version of Halifax’s offering pays a rate of 5.30 per cent AER/gross p.a. on a one-year term, with a minimum opening investment of £3,000 and no additional deposits allowed. Interest is paid upon maturity, at the end of the fixed term, into the account - and withdrawals can only be made upon closure.

Its variable rate ISA pays a maximum of 4.50 per cent AER/gross p.a. on balances in excess of £27,000, with a nominal minimum opening investment of £1 and additional deposits allowed up to the annual subscription limit per tax year. Interest is paid annually on April 5th and withdrawals are allowed - with a minimum of £10 to be taken out at any one time. Up to £3,000 can be invested per tax year in this account.

The bank’s ISA Saver Direct is another popular service, featuring extremely competitive interest rates of up to 5.25 per cent AER/gross p.a. It shares most of the facets of the variable rate ISA, but has the added bonus of being manageable online or over the phone, with the balance able to be viewed on the internet. Unlimited withdrawals of £10 or more can be made by telephone or online without prior notice.

Halifax also offers a self-select ISA. This facilitates dealing in stocks and shares and comes in both Mini and Maxi versions with £4,000 (in the former) or £7,000 (in the latter) investable in each tax year up to April 2010. Regular payments - as a minimum of £50 a month - can be made into these accounts or lump-sums can be paid in as one-offs. Interest is still accumulated on the cash in these ISAs while the customer decides what stocks and shares to purchase. Shares which are already owned by the account holder can often be cashed in, too, and used to buy more shares for this Halifax ISA.

A dedicated transfer service can work to transfer existing ISAs to Halifax if a customer desires, aiming to make the process as streamlined as possible. A highly reputable high street bank, Halifax provides ISAs which are very competitive in today’s rapidly-growing market.

Written Exclusively by AdFero for ISA Guides

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