Are you currently in the look-out for an investment product that will allow you to grow your money, but at the same time comes with virtually no risk? If so, then you are probably best off sticking with a simple ISA. There really isn’t too much to separate the types of interest that banks and building societies are currently offering on their respective ISAs, and the annual AER will rarely exceed 1%.
Nevertheless, one such provider that currently has a good selection of ISAs is that of Halifax. As such, if you are thinking about investing some money into a Halifax ISA, be sure to read our review to see what’s on offer.
Halifax ISAs: What ISAs are offered?
Below we have listed all of the ISA accounts that Halifax currently has on offer. On top of the underlying interest rates, be sure to make considerations regarding withdrawals and account minimums.
Is a Halifax ISA safe?
One of the overarching benefits of invested money into a UK-based ISA is that the process is virtually risk-free. While in return you will receive ultra-low interest rates, ISAs are ideally suited to those of you that have no appetite for risk. This is because Halifax is part of the UK’s Financial Services Compensation Scheme (FSCS). For those unaware, this will protect your money up to the first £85,000. If Halifax were to go under, the FSCS is covered by the UK government.
However, just remember that the protection in place is for all of your money at Halifax, not per account type. Therefore, if you have funds with Halifax within a different account (for example a standard current account), then only the first £85,000 will be protected. As great as the protections of the FSCS are, you won’t benefit from a risk-free investment if you go with the Halifax Stocks and Shares ISA. As we mentioned earlier in our review, there is no guarantee that you will actually make any money, as your returns are based on how your shares perform on the stock exchange.
How much can I invest into my Halifax ISA per year?
First and foremost, the account limitations imposed by Halifax will depend on the specific tax year. In the year of 2019/20, the UK government allows you to invest up to £20,000 into your ISA account. The great thing about this is that you have the option of distributing your £20,000 across one or more ISA accounts.
For example, if you are saving for a house you could take full advantage of the £200 monthly deposit, and leave the rest of your annual allowance for a standard Cash ISA. On the other hand, just remember that you need to check the terms and conditions regarding withdrawals. While some Halifax ISAs allow you to replace previously made withdrawals without it impacting your annual allowance, others don’t.
Do I need to have a bank account with Halifax to open an ISA?
This depends on the specific ISA you are looking to open. For example, if you are looking to open the Halifax ISA Saver Variable - which gives you 24/7 access to your cash, then you'll need to open a fully-fledged account.
Is a Halifax Help to Buy ISA safe?
Yes, it is 100% safe. The Help to Buy ISA is fully protected by the FSCS, meaning that your savings will be protected by up to £85,000 in the event that Halifax Bank collapsed.
How much can I put into a Halifax ISA?
As per the 2019/20 limits, you can invest up to £20,000 per year. Don't forget, this is reviewed annually by the UK government.