Halifax ISA to pay instant interest

Savers who transfer their cash ISAs to Halifax will receive instant interest thanks to a fast-track scheme for beating the average 26-day wait to complete the switch.

Halifax promised to start paying interest on transferred accounts as soon an application form is completed.

The UK's biggest cash ISA provider, part of Lloyds Banking Group, said consumers would start to receive interest on their account on the day it received a completed ISA transfer form.

The move comes after an investigation by the Office of Fair Trading found it takes an average of 26 days to switch an ISA from one provider to another, with a quarter of transfers taking more than 30 days.

Halifax estimates consumers collectively lose £24 million in interest each year as a result of these delays, as during this period savers continue to earn the lower rate of interest paid by their existing provider. There can also be a gap of up to five days during which no interest is earned at all.

Consumers cannot transfer an ISA from one provider to another themselves, as they would lose the tax-free status of the money held in the account if they did.

Back to blog home


All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Get started with Money Dashboard

Money Dashboard will help you discover where your money is going, start saving and plan for the future - for free

Related articles

Download app
Join 600,000+ people on Money Dashboard
Sign up - it's free