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LloydsTSB Fixed rate Isa 6.5%

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  • steveandel
    steveandel Posts: 247 Forumite
    dkmax wrote: »
    In case no one has noticed, Lloyds TSB have dropped the 6.5% interest rate to 5%.. I was in a branch on Friday and they had the new leaflets printed out. Takes effect today.

    I am a little concerned about the rate I will be receiving and will be seeking clarification. My ISA transfers have not completed yet and the deposit for this tax year was rejected at the first attempt so only got funds into it today..


    I'm fairly certain I read that the fixed rate period starts from the date of the account being opened, not the date of the first deposit, so you should be ok. Can anyone confirm this?
  • steveandel
    steveandel Posts: 247 Forumite
    matt2008 wrote: »
    Now that the 6.5% ISA has been withdrawn, what is the situation for those who have already opened it?

    Are we still allowed to make further deposits of this years allowance, or is it now closed to further deposits?

    .

    Yes you can still make deposits. It has only been withdrawn for new accounts. People who had already opened one still have them with the original terms and conditions as when they applied.
  • whu
    whu Posts: 23,461 Forumite
    10,000 Posts Combo Breaker
    steveandel wrote: »
    I'm fairly certain I read that the fixed rate period starts from the date of the account being opened, not the date of the first deposit, so you should be ok. Can anyone confirm this?
    I was told the same on friday - have a look at my post 667 although it appears that different people have been told different things!!
    Keep the Faith:cool:
  • Baldur
    Baldur Posts: 6,565 Forumite
    The Terns & Conditions (paragraph A.1.2), which anyone opening the account should have been given at the time, say "Your FRISA will start from the date of your first deposit which must be accompanied by a valid application form. Applications cannot be backdated."
  • steveandel
    steveandel Posts: 247 Forumite
    Baldur wrote: »
    The Terns & Conditions (paragraph A.1.2), which anyone opening the account should have been given at the time, say "Your FRISA will start from the date of your first deposit which must be accompanied by a valid application form. Applications cannot be backdated."

    Ok, thanks for the clarification. Looks like dkmax needs to contact LloydsTSB to confirm they've received payment then.
  • dkmax_2
    dkmax_2 Posts: 228 Forumite
    Part of the Furniture Combo Breaker
    I wonder if a transfer authority counts, in legal terms, as a effective deposit. I don't know the law/case law in this area but there is certainly scope for argument..

    In addition, they rejected my first payment into the account so I think I have grounds for complaint if they do not give me the 6.5% account.
  • exel1966
    exel1966 Posts: 5,050 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    dkmax wrote: »
    In case no one has noticed, Lloyds TSB have dropped the 6.5% interest rate to 5%.. I was in a branch on Friday and they had the new leaflets printed out. Takes effect today.

    I am a little concerned about the rate I will be receiving and will be seeking clarification. My ISA transfers have not completed yet and the deposit for this tax year was rejected at the first attempt so only got funds into it today..

    Did you sign the completed paperwork and open the account prior to today ? If so you get the tiered rate up to 6.5%. It doesn't matter what date thereafter the transfers take place.
  • dkmax_2
    dkmax_2 Posts: 228 Forumite
    Part of the Furniture Combo Breaker
    Baldur wrote: »
    The Terns & Conditions (paragraph A.1.2), which anyone opening the account should have been given at the time, say "Your FRISA will start from the date of your first deposit which must be accompanied by a valid application form. Applications cannot be backdated."

    That's just standard ISA boiler-plate. It says when the ISA is deemed to have started but does not say when the account itself was opened. The two are not the same thing although the dates and conditions may be coincident.
  • exel1966
    exel1966 Posts: 5,050 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    By signing a declaration to transfer dated prior to the rate drop, you have in effect made a 'deposit' and therefore are entitled to the tiered rate up to 6.5%. This is why your application must include a transfer authority form.
  • Baldur
    Baldur Posts: 6,565 Forumite
    dkmax wrote: »
    That's just standard ISA boiler-plate.
    Boiler-plate or not, the Ts & Cs form the basis of the contract signed by a depositor, rather than a vague "I was told that....."
This discussion has been closed.
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