LloydsTSB Fixed rate Isa 6.5%

whu wrote: »

Be grateful if Goodriddance could clarify the following - if 6.5% (and 12 month period) starts when money transferred from other ISA then isnt it better to put this years allowance in now and get 5% on £3600 and then 6.5% on the total amount when transfer comes in rather than keeping the £3600 in a savings account and pay tax on interest?Also if 12 month period starts when money transferred from old ISA then you will not be waisting any of the 6.5%?
Thanks.

If you put this years allowance in now before the transfer(s) come in then surely the 12 month period will start from when you put this years allowance in and when the transfer(s) come in about 30 days later you'll have about 11 months left with your new higher (6.5% earning) balance. Am I right in thinking if you wait till the transfers are in and THEN add this years allowance you'll get the whole 12 months period for your higher (6.5% earning) balance?

I have just opened this in branch, I was told that regardless of how long it takes for the money to be transfered, there will be a full 12 months fixed rate @ 6.5% added to the acc,(for deposits in excess of £9000.), albeit the account is now opened without any money in it,(she did say that some banks/BS will hold on to the money so as to keep it in their accounts before transferring, she did say Lloyds do this!),

The transfer forms will be posted tonight to their ISA centre,(this is probably where the backlog occurs!), and from there out to the relevant bank/building society, it is then up to them how long they take,(up to 30 days), to transfer the money.

I was given an acc number and sort code, also registered for online banking, had to type in a password, and my I D will be sent through the post within 3-4 days, she is to monitor the acc and will inform me when the money has been deposited.

I was also told that this ISA is available until close of business tomorrow, and from Monday the 14th April the FRISA will drop to 5%, this was informed to her via a fax from head office yesterday, (I have not seen said fax).

I have just spoken to 2 people at Lloyds and been told the following (some of which ties up with information given to others and some which differs:
1 12 months starts from accn opening date not date of any deposits
2 Old provider will pay interest until date of cheque sent to Lloyds
3 Lloyds will pay interest from date of cheque (at 6.5%)
4 If you have put this years allowance in you will get 5% until transfer comes in at which point you will get 6.5% on the whole lot
I was also told previously that you can add to the ISA if a fixed ISA matures during the current tax year.

URGENT

I just went to sign up for my account, and spoke with the branch manager.

Apparently he has received instructions that this account is to be withdrawn as of close of business tomorrow (Saturday). For most branches that will mean lunchtime.

GET IN THERE QUICKLY BEFORE THIS GOES.