Halifax U-turn on top Isa account.(Business)

HALIFAX has backed down from closing its Isa Direct Reward following exposure in Money Mail.

Last week it told us that it was to close the account to new savers from June 18. Now it has had a change of heart and will keep the account open for the time being.

The account pays 3pc -- one of the top rates on easy access cash Isa accounts. But after you have been in the account for a year, you need to switch out because the rate drops dramatically, currently to just 0.5 pc. Unlike with other top-paying accounts, you can transfer your existing cash Isas into the Halifax Isa Direct Reward. It promises to pay the 3pc rate on your money from the time it receives your completed application form rather than when the money turns up from your current provider. Top rates on easy access accounts -- including an initial bonus -- which do not allow transfers come from AA Internet Access Isa at 3.35pc and Santander Flexible Isa 3 at 3.3pc.