LloydsTSB Fixed rate Isa 6.5%

JoeA81 · 29 February 2008 at 7:49PM

I currently have £7.5K in a YBS e-ISA (5.8%). And I have two options as I see it:

1. If I transfer to this LloydsTSB one now, then I will only get 5.15% until April 6th, when I can add £3600 to take it over 9K, and then get the 6.5% on my £11,100 for the remainder of the term. This means I will lose out on a little interest for a month.

2. I could leave my YBS ISA as is, pay in the £3,600 on April 6th, and then do a transfer to LloydsTBS 6.5% and get the full 6.5% from the off. But this runs the risk of the offer being closed early?

Is does say its available until 31/05/2008, but I've been stung before by waiting for offers which suddenly closed early.

Do you think they might close this one early? Hmmm...what to do.

Christal_2 · 1 March 2008 at 12:09AM

Really happy to find this post as I had a rather different experience with Lloyds when me and my other half tried to open one 6.5% ISA last weekend.

We went into the branch, explained to one staff what we wanted, were sat down with one lady who "can" help us to open the account. First she couldn't find the product on the PC, then after we pointed it out to her on their website, she checked with someone and came back saying to be able to enjoy the 6.5% interest, we have to invest in the investment ISA as well as the cash isa!!!

We were a bit shocked but she said we need to see one "FInancial Advisor" to open the account, so we went. The "Financial Advisor" said the exactly same thing to us that we have to invest the amount in the investment ISA to be able to enjoy the high interest rate. Then spent more than an hour(!!) to ask every little details about our financial situation and showed us some brouchers and told us he would put up together a plan for us to consider on the investment side of the ISA.

We just couldn't believe the guy said about the investment stuff so I asked him before we left that if we put in 3000 now, transfer last years allowance then open a new cash ISA after April can we then qualify the high rate? He said yes but just didn't want to talk much about it.

So basically the information they were giving us at the beginning are totally wrong! We will be seeing him again tomorrow and I'm not too sure what I'm going to say to him yet.....

MiserlyMartin · 1 March 2008 at 1:26AM

Sounds to me like you have been incorrectly advised and given hard sell for something that bares no relation to the product you were interested in. If it were me I'd put in a complaint to Lloyds Head Office about the staff at your branch, who see your enquiry as a chance to sell you stuff you don't need to maybe hit some kind of sales target or earn commission.

wearside_2 · 1 March 2008 at 8:29AM

My wife and I are going to our local Lloyds on Monday to open one of the new Fixed rate ISA's. We both have over £9000 in the Kent but that only pays 5.76% from today. I hope that we do not have to go through the process off seeing Financial Advisors etc. to open the account.

As far as I am concerned, the process should be straightforward. Fill the forms in, show our passports for ID, fill in and sign transfer forms for the Kent and bid a fond farewell!!:D

obsessed_saver · 1 March 2008 at 8:40AM

Likewise. I'm going into the branch today and be at the front doors at 9am. I won't be tolerating any hard sell of any kind. I'm just there to open this account and get out of there. Street parking is limited to two hours in town.

stevedb11 · 1 March 2008 at 10:22AM

MiserlyMartin wrote: »

After nagging my branch, I also recieved this letter. But they only gave me 6 days loss of interest, when I calculate it to be 9 days. (Old ISA closed 18/2 - Lloyds ISA credited 27/2) Is this correct?

Hi Martin,
my letter from Kent BS, informing me my ISA had been transferred was dated the 12th Feb, and the letter from Lloyds was dated the 26th, so in my case 13days is about right. Steve

KTF · 1 March 2008 at 11:57AM

Just finished opening one over the phone now. Two transfer forms are being sent for me to check and return - Egg is under 'other' on their system - then the transfer will take place. Pretty painless really and all set to put in the full allowance when April rolls round.

They can also combine it with a stocks and shares option which is what Christal must have been referring to but they are separate products so no need to take one out.

Christal_2 · 1 March 2008 at 4:55PM

Just got back from the appointment, yes KTF is 100% correct, there are 2 different mini cash ISA, one is the fixed rate isa 6.5% for amount over 9000, another is giving the same interest rate as the Fixed rate isa but when you match the amount you put in the cash ISA in the investment ISA you get an extra 1.5% on top of the cash ISA interest rate, means you will be getting 8% for 9000+, 6.5% for 3000 plus.

Anyway had a look at the plan the guy made for us, SCottish Widow charges 5% for set up cost and 1.75% as management fee for the investment ISA, so if the ISA grows 6% for the first year by end of my first year investment I will be WORSE off then keeping the cash under my bed! Also the guy tried to sell me the critical illness cover which I politely said I would consider but only after reading the full T&C.

I think I'm just gonna wait till next week then open the 6.5% Barclays ISA as I won't qualify the high interest rate in Lloyds untill next tax year anyway. And when the guy calls me I will have to tell him sorry but the product he wants to sell just doesn't look good.

Geoffo_M · 1 March 2008 at 5:09PM

Took the decision this morning to transfer my ISA. YBS's decision to cut to 5.5% was the final straw. All quite painless over the phone - took about 15 minutes.. The only hard sell was the availibility of a 50% split with a "combi" stocks and shares ISA at the end of a year. One thing I was surprised was that they needed to know my annual income. I asked what that had to do with transferring an ISA and was told that it is part of the ISA opening regulations.

She told me that I could have to wait up to 5 weeks, but I would not lose any interest. She also said that interest in their ISA was intense.

boobbby · 1 March 2008 at 7:11PM

Christal wrote: »

Just got back from the appointment, yes KTF is 100% correct, there are 2 different mini cash ISA, one is the fixed rate isa 6.5% for amount over 9000, another is giving the same interest rate as the Fixed rate isa but when you match the amount you put in the cash ISA in the investment ISA you get an extra 1.5% on top of the cash ISA interest rate, means you will be getting 8% for 9000+, 6.5% for 3000 plus.

Anyway had a look at the plan the guy made for us, SCottish Widow charges 5% for set up cost and 1.75% as management fee for the investment ISA, so if the ISA grows 6% for the first year by end of my first year investment I will be WORSE off then keeping the cash under my bed! Also the guy tried to sell me the critical illness cover which I politely said I would consider but only after reading the full T&C.

I think I'm just gonna wait till next week then open the 6.5% Barclays ISA as I won't qualify the high interest rate in Lloyds untill next tax year anyway. And when the guy calls me I will have to tell him sorry but the product he wants to sell just doesn't look good.

You also have the buy/sell spread (5%) to make up with the investment ISA and income from it is taxed at the base rate.

Last time I looked Barclays had withdrawn their 6.6% ISA

LloydsTSB Fixed rate Isa 6.5%

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