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LloydsTSB Fixed rate Isa 6.5%
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Oh good grief Judwin!
This indeed is a soap opera.
Thanks IanW for your post. I started to doubt myself after dkmax's last post re contracts and homed in on A1.2 again but I am now back on track ready to take LTSB on next year if need be.
MONEYPENNY:
I hope you do get that in writing. Your money will then earn interest twice until your old provider closes the account.LOL0 -
I hope you do get that in writing. Your money will then earn interest twice until your old provider closes the account.LOL[/quote]
And pigs might fly !!0 -
I agree with the 1st sentence but LTSB's own T&C's say the account starts when a deposit is made and [to paraphrase] that can either be a current year subscription or transfer in. How can the 12 months clock start before the account is even open?
I'm pointing out that they have used the same template as per all their other ISAs and that it is therefore alluding to the ISA wrapper that is starting, not the account clock. As should be evident, clarity is not LTSB's strong point and while it may be construed as you say, I am suggesting that LTSB did not intend it to be so.
I'm showing that the the deposit and the opening date are not necessarily the same thing. If anything it strengthens the notion that the clock starts upon opening. This is common banking industry practice.Rather odd to use markedly different T&Cs of a completely different account to interpret when the clock starts running for this ISA - BUT if you do, then the fact that one is opened by the application alone and the other requires both an application AND a deposit to be considered open stands out a mile!
Easy because it is up to you to make an initial deposit and use the 12 months to the maximum. If you don't have the cash or have used the allowance already and thus need to transfer that's just bad luck. LTSB are not responsible for a less than optimal use of their account.How can they offer a 12 month Fixed Rate ISA then start the clock running before that account is an ISA?0 -
MONEYPENNY wrote: »His reply was the same as before stating that interest at 6.5% would be payable on the full transfer figure of £16000 from the next business day as it was just the same as writing a cheque for that sum,and my maturity date would be the day I opened my account ie:12/408.
This admits both interpretations of the clock starting date - i.e. on opening or deposit. I am surprised that they are going to provide interest on cash they don't quite have access to but if these arrangements are in place, then so be it. Everyone should be happy. It will be interesting to see if the transfers are back-dated on the online account...0 -
Sorry, haven't read this thread right through but if the fixed rate term doesn't start from the date the account was opened, rather than a date up to 30 days or more later when a transfer in is received couldn't that cause even greater complications for some people?
Yes, there should really be certainty for both parties to the contract. One argument against my own, is that the 30-day transfer limit places the bounds on the uncertainty. While it may take longer, then you are into compensation/back-dating territory which is a separate matter.
I wish LTSB could employ people that could write contracts without resorting to unsuitable templates and we'd all be saved the speculation and interpretation of the fine print...0 -
Everyone should be happy?This admits both interpretations of the clock starting date - i.e. on opening or deposit. I am surprised that they are going to provide interest on cash they don't quite have access to but if these arrangements are in place, then so be it. Everyone should be happy. It will be interesting to see if the transfers are back-dated on the online account...
I am indulging in silly thought processes now but....
I wonder how HMRC would see this if as boobbby says pigs fly?
There is a maximum allowable subscription per tax year.
Gaining interest twice could show up as equivalent to having more than the allowable subscriptions per tax year.... rather like people trying to pay £3600 in two places and HMRC picking up on it and closing one of the accounts.
I don't have a clue how HMRC are involved but surely for that overlapping period of time it would look like two subscriptions.
Big can of worms for LTSB surely.
As for common banking practice, it is a shame that LTSB don't adopt Halifax's fixed rate ISA practice.The confirmation of investment page states very clearly:dkmax wrote:If anything it strengthens the notion that the clock starts upon opening. This is common banking industry practice.
Account start date:XXX
Investment term: one year
Total Investment:XXX
Maturity Date: XXX
My (internal) transfer from variable to fixed was made over the phone ( unlike LTSB branch application) and the dates on the certificate received coincide with the date of my phone call.
So seemingly an instant transfer rather than the rather complex situation I described several pages back with potential loss of one week's interest while LTSB send a cheque back to themselves.( Of course what went on behind the scenes with Halifax on the processing side might be more complex but it is made to appear simple,clear and seamless to the investor)
Shame on LTSB.0 -
re: http://forums.moneysavingexpert.com/showpost.html?p=9783101&postcount=442
Lloyds seem to have messed up
they haven't yet sent any letters to my current ISA provider. I called this morning and was told that they don't know why but there may be some problem with the original form. They're sending me new ones. Well that's 1 month of interest lost. I feel a complaint letter brewing 
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Probably a result of the common mistake by the person who wrote the contract in thinking that what was meant is obvious - whereas to their customers it clearly isn't.I wish LTSB could employ people that could write contracts without resorting to unsuitable templates and we'd all be saved the speculation and interpretation of the fine print...
My assumption is that the term starts from the day the contract is agreed regardless of what funds, if any, are in the account. That seems fine and reasonable to me.
More widely, I'd be happier if all banks employed people with at least a GCSE level grasp of English to write their contracts and forms. I've just made two CHAPS transfers from Abbey and pointed out to them that where their contract says the above sum includes the £25 fee it actually means excludes. They say it hadn't been noticed before and will get it rectified. Amazing.0 -
Judwin,
I wonder if LTSB are digging their heels because of misinterpretation of this:
You cannot open a Fixed Rate Cash ISA where you have already opened or contributed to a Cash ISA (held either with us or another provider) in the same tax year (unless you transfer the whole account into this one), or if you have opened or contributed to a Maxi ISA (held either with us or another provider) in the same tax year.
http://www.lloydstsb.com/legal/savings_legal/fixed_rate_cash_isa_savings_page.asp
The bit in red is true for current tax year contributions but one is allowed to do partial transfers of previous years' contributions.0 -
sloughflint wrote: »Judwin,
I wonder if LTSB are digging their heels because of misinterpretation of this:
You cannot open a Fixed Rate Cash ISA where you have already opened or contributed to a Cash ISA (held either with us or another provider) in the same tax year (unless you transfer the whole account into this one), or if you have opened or contributed to a Maxi ISA (held either with us or another provider) in the same tax year.
http://www.lloydstsb.com/legal/savings_legal/fixed_rate_cash_isa_savings_page.asp
The bit in red is true for current tax year contributions but one is allowed to do partial transfers of previous years' contributions.
To start with I think they were. But, now I've had a chance to re-read the T&C of the FRISA, Section 5.2, the last sentance reads "Part transfers are not permitted".
And I think that's why they're digging their heels in now. A bank error (part Abbey, part LTSB giving mis-information and ignoring my instructions) has caused too much to pe paid in, and they are using the T&C's to stop it being transferred out again.
However, when the fixed rate expires (probably next Feb for me), the account reverts to a standard variable rate isa, and the T&C for that do not appear to prohibit partial transfers. Section 4.2 of the T&C for that don't include the same sentance.
So, unless I can get LTSB to accept that this was a bank error, it appears I'm trapped in an ISA paying 6.5% till next Feb. :mad:0
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