LloydsTSB Fixed rate Isa 6.5%

carpy · 2 June 2008 at 3:11PM

i've just sent a long email to them (cc mr e. daniels!) about the long delays, incorrect back-dated interest and dispute about when the 12 months start.

i wait with baited breath...................

sloughflint · 3 June 2008 at 7:11AM

boobbby wrote: »

C. Lloyds actually sent me a letter showing the actual backdated interest. As this interest is added on at the end it is easy to check. 6.5% ÷ 365 x number of days. They calculated mine correctly!

carpy wrote:

i've just sent a long email to them (cc mr e. daniels!) about the long delays, incorrect back-dated interest and dispute about when the 12 months start.

i wait with baited breath...................

No calculation in my letter- just a promise. I had better pop into branch I think!

gelato_cat · 3 June 2008 at 8:19PM

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3rd June: Just logged in and see that my Egg money is in there. Was beginning to think that it was never going in!

NS&I closed 7/5, credited 16/5 (approx £3k)
YBS closed 9/5, credited 22/5 (approx £30k)
Egg closed 13/5, credited 3/6 (approx £6600)

I haven't received any letters from them since they said they'd written to my old providers, so I'm going to write to them to ask:

- when my 12 months started (and when it finishes)
- what % interest I will be getting on each of the three deposits. The NS&I money was less than £9k and interest will be backdated to 7th May, but the YBS money was way more than £9k and will be backdated to almost the same date (two days later). By my reckoning, they should give me 6.5% on everything bar £3k for two days, but I doubt they'll agree. I think they will say it depends on date of deposit and the backdated interest date doesn't come into it
- a calculation of the interest I will get at the end of the term

Is there anything else I should be checking while I'm at it? Happy to share the response when I get one!

Suze

Suzey wrote: »

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22nd May: YBS money has been credited to the account, bringing it over the magical £9k mark but also taking me over the £35k compensation limit - it's a risk I have to take!

To recap:

NS&I closed 7/5, credited 16/5
YBS closed 9/5, credited 22/5
Egg closed 13/5, not yet credited

Suze

Iconic · 4 June 2008 at 8:09AM

Suzey wrote: »

Is there anything else I should be checking while I'm at it?
Suze

Do you think you will be keeping the money with Lloyds at the end of the fixed rate period? I am almost certain the rate they will offer at the end of the fixed rate term will be uncompetative. If this is the case you don't want delays like this next year so you should ask how much notification they require to transfer the funds on the day the fixed rate ends.

derrick · 4 June 2008 at 1:50PM

I have finally got what should be a reasonable outcome to my concerns,(except that they have assumed wrongly the interest rate for Northern Rock, which I hope to have put right), the dates on the cheques were, NR 1st May, NS&I 14th May. Deposit dates into LTSB FRISA are, NR, 19th May, NS&I 22nd May.

Received a letter from them today and have posted it here in its entirety, with the exception of names/reference numbers etc; -

Dear Mr ******,

Thank you for your telephone calls of 12 and 16 May 2008. I was sorry to learn that you remain unhappy with the transfer of your Northern Rock and National Savings and Investments (NS&I) ISAs to our Fixed Rate ISA (FRISA). Please accept my sincere apologies that I have been unable to reply to your concerns sooner.

My understanding is that the crux of your concern is that the terms and conditions for our FRISA are misleading. You are also unhappy with the time it has taken for the balance transfers to be credited.

As we confirmed in our letter of 9 May your FRISA was opened on 11 April to ensure it qualified for the fixed interest rate of 6.5%. The account needed to be opened with a minimum deposit of £3,000, but in this instance we were prepared to open the account without this because you were transferring existing ISA balances of greater than £9,000 to us.

I understand that you believe the account should not have been opened until the balances were received so that you could earn interest at 6.5% for a full twelve months. However, we had agreed to waive the requirement for an initial minimum deposit on the understanding that interest would begin to run when the money being transferred to us was received. Had we waited until the transferred balances were received we simply could not have offered you the 6.5% fixed rate as by that time it had been withdrawn.

Until your accounts with the existing providers were closed they continued to earn interest at the applicable rates. Once the money was credited to your FRISA we adjusted the accrued interest to ensure that the fixed rate was paid from the day following the date on which they were closed. As a result interest has accrued on your account at 6.5% from 2 May in respect of the transfer from Northern Rock and from 15 May for NS&I.

During our conversations, in an endeavour to resolve matters amicably between us, I agreed that we would make an ex-gratia award in respect of any shortfall in interest that might have occurred between your application and the receipt of the transferred balances. In calculating the shortfall we have assumed that your investment with Northern Rock was in their five year fixed rate Cash ISA product, interest rate 6.16% and the NS&I investment was the standard Cash ISA earning interest of 4.85%.

Using the above rates of 0.5% in respect of the Northern Rock investment between 11 April and 18 May and 1.65% for the NS&I money between 11 April and 21 May, I have been authorised to make a further interest adjustment of £32.35 in this regard.

Please accept my apologies if either of my assumptions regarding interest rates is incorrect, however the previous providers are unable to give me details specific to your investments with them. Should you wish me to reconsider a further interest adjustment, I will need to see copies of any confirmation you might have of the interest rates being paid in respect of your previous ISA products.

I am also conscious that we have been unable to answer your questions about our FRISA to your satisfaction. Although, your account and transfers were carried out correctly, on this occasion I have also been authorised to make an ex-gratia payment of £50 to say how sorry we any additional concern your conversations with us have caused. I have arranged for our cheque to be issued and this will be sent to you under separate cover.

Whilst I am sorry you had occasion to contact us again about your FRISA, I trust you will find my comments helpful in understanding our position. However, if you remain unhappy you should regard this letter, when read in conjunction with our letter of 9 May 2008 as our final response. This means that you can ask the Financial Ombudsman Service ('FOS') to independently review our response. If you do want them to look at your complaint, you need to contact them within six months from the date of this letter and I enclose a leaflet about the FOS which tells you how to go about referring your complaint to them.

Yours sincerely

central · 4 June 2008 at 8:32PM

Well I gave up today, applied 21.3.08, got the we have written to your existing ISA providers on 31.3.08 rang and transferred to branch late april and was told don't worry we will sort it, got another we have written to your providers late May 2008. Rang again today and they say they have only one transfer form and that needs to be re-done because the forenames don't match and there isn't one for the second provider.
Told them to stuff it. Keep my existing ISAs where they are and will accept 5% or so until I can transfer all 3 to a new provider next year

dkmax_2 · 6 June 2008 at 12:19AM

central wrote: »

Well I gave up today, applied 21.3.08,

I'm about to give up myself from a similar starting date. It just isn't worth the hassle and expense of chasing these guys up but at least I've been spared the money 'in limbo' scenario. I shouldn't let them away with it but they're wearing me down.

Now to discover how easy it is to transfer out :rotfl:

sarahc5388 · 6 June 2008 at 7:57AM

Iconic wrote: »

Do you think you will be keeping the money with Lloyds at the end of the fixed rate period? I am almost certain the rate they will offer at the end of the fixed rate term will be uncompetative. If this is the case you don't want delays like this next year so you should ask how much notification they require to transfer the funds on the day the fixed rate ends.

Barclays offering 6.5% on their Tax Haven Isa

Baldur · 6 June 2008 at 8:03AM

sarahc5388 wrote: »

Barclays offering 6.5% on their Tax Haven Isa

They were offering 6.5%, it's been 6.25% AER for some time.

gelato_cat · 6 June 2008 at 11:37PM

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6th June: Uh-oh, I knew it had to go wrong somewhere. My Egg money has been taken out of my Lloyds FRISA and in the detail it says "unpaid cheque"!!! Anyone else had this?

Spose I'd better ring Lloyds tomorrow. Very worrying though as my Egg account has def been closed and all the money removed...

I spose in a way I'm lucky, as I received my confirmation letter from Lloyds today saying the Egg money had been credited (so have a record of the date, amount etc), but I predict problems ahead with trying to recover the funds and getting them to backdate the interest (if they get a new cheque it will have a new date on it)!

I thought my experience was a bit too good to be true!!!

Suze

Suzey wrote: »

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3rd June: Just logged in and see that my Egg money is in there. Was beginning to think that it was never going in!

NS&I closed 7/5, credited 16/5 (approx £3k)
YBS closed 9/5, credited 22/5 (approx £30k)
Egg closed 13/5, credited 3/6 (approx £6600)

I haven't received any letters from them since they said they'd written to my old providers, so I'm going to write to them to ask:

- when my 12 months started (and when it finishes)
- what % interest I will be getting on each of the three deposits. The NS&I money was less than £9k and interest will be backdated to 7th May, but the YBS money was way more than £9k and will be backdated to almost the same date (two days later). By my reckoning, they should give me 6.5% on everything bar £3k for two days, but I doubt they'll agree. I think they will say it depends on date of deposit and the backdated interest date doesn't come into it
- a calculation of the interest I will get at the end of the term

Is there anything else I should be checking while I'm at it? Happy to share the response when I get one!

Suze

LloydsTSB Fixed rate Isa 6.5%

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