If you have an Individual Savings Account (ISA), you are well aware of the most common frustrations of owning such an account. While an ISA is known as a tax-efficient plan for UK residents 16 and older to save, there have been many complaints on various aspects of these accounts.
Halifax ISA Promise, introduced in 2010, has endeavoured to reduce these complaints and save their customers a bundle of cash. In fact, the Halifax ISA Promise has created over £12 million in interest for its users.
One of the most common frustrations with ISAs has been the delays when transferring funds from one ISA to another. Halifax now pays the customer interest on the very first day the application is received, greatly boosting the amount of interest these customers are receiving.
The other key components that the Halifax ISA Promise covers are:
- 1: In response to complaints regarding special deals being available only to a new customer, Halifax has made all deals available to all customers.
- 2: Customers were frequently upset at what they considered hidden interest rates, prompting Halifax to clearly display current interest rates both online and on every statement.
- 3: Another common complaint was not being aware of when a promotional reward or special fixed rate was about to end. Halifax customers will now receive advance notice of these dates.
The average balance of a cash ISA in the UK is £8,678, about a third of gross annual earnings. UK residents are serious about saving their money and have found that the ISA is the way to go. With the new changes brought on by the Halifax ISA Promise, more customers than ever can earn interest on their cash.
Northern Ireland and Wales tend to save the biggest percentage of their earnings at 39 percent. London customers save around 23 percent, while Scotland citizens save 26 percent. It is hoped that the Halifax ISA Promise can inspire more UK residents to save more of their cash.
Saving is definitely important, especially in the economic times we are facing and the uncertainty of the future. With programmes such as the Halifax ISA Promise, financial advisors are hopeful that more people will be interested in saving their money. People with a savings account tend to have a better sense of their finances and enjoy more financial freedom than those who don’t save.