2009 Lloyds TSB ISA

roddydogs

The "start Date" bit was discussed ad infinutm about 9 months ago, with hundreds of posts, if you want to read them all!
Serioulsly, if you do want to transfer out, think of all the fun it will be-especially if you transfer to NW!

wearside_2

I have checked my Terms and Conditions and as they clearly state

" Your FRISA will start from the date of your first deposit which must be accompanied by a valid application form. Applications cannot be backdated".

Both myself and my wife have submitted our complaints via the website https://www.howtocomplain.com which will send the complaint direct to their Customer Service Department.

Fella

wearside wrote: »

I am puzzled by my letter from Lloyds TSB that I received this afternoon. It states that my Fixed Rate ISA matures on 3 March 2009, when interest will be added to my account. Although I opened the account in March 2008 the funds were not credited to my account until 8 April 2008. This means that my 12 month Fixed Rate ISA is in fact an 11 Month Fixed Rate ISA. Does anyone have any views on this?

Hang on - I think it's possible this may actually be GOOD news for you.

I applied to transfer my ISA on 7th Feb 2008. I was one of the many people who had nightmares trying to do so & the funds only left my "old" ISA on 02/04/08 & I got confirmation that Lloyds had received them on 11/04/08.

If you recall, lots of people had similar problems & the chat as I remember it was that we would be getting the 6.5% fixed rate from the day we applied for the account because it wasn't our fault that Lloyds were so hopeless at the handover. I've not revisited the thread for ages but this was it:

http://forums.moneysavingexpert.com/showthread.html?t=725969


Anyway, yesterday Lloyds sent me the letter offering transfer into the new 3.75% account & it says "your fixed rate ISA will automatically mature into our variable rate ISA on 07/02/09" - i.e. exactly one year since I applied for the account.

So as I see it, the question is this: Will Lloyds have:

A) Only paid me interest since my money was transferred in at the beginning or April '08 & then chosen to end the high fixed-rate deal on the anniversary of my application (in which case they'll have shafted me twice over).

or

Paid me 6.5% interest since the day of my application on 07/02/08 (even though my old provider were still paying me interest up until the transfer in early April '08) - in which case colour me happy.


Am not exactly sure how I'll be able to find this out prior to 7th Feb


But I suspect the above situation (these new letters being dated from the anniversary of when people applied for the 6.5% ISA as opposed to when their transfer actually went through) applies to other people on this thread.

EDIT> see my post #39 for how I actually think this will work....

Wsb5tails

Fella wrote: »

Hang on - I think it's possible this may actually be GOOD news for you.

I applied to transfer my ISA on 7th Feb 2008. I was one of the many people who had nightmares trying to do so & the funds only left my "old" ISA on 02/04/08 & I got confirmation that Lloyds had received them on 11/04/08.

If you recall, lots of people had similar problems & the chat as I remember it was that we would be getting the 6.5% fixed rate from the day we applied for the account because it wasn't our fault that Lloyds were so hopeless at the handover. I've not revisited the thread for ages but this was it:

http://forums.moneysavingexpert.com/showthread.html?t=725969


Anyway, yesterday Lloyds sent me the letter offering transfer into the new 3.75% account & it says "your fixed rate ISA will automatically mature into our variable rate ISA on 07/02/09" - i.e. exactly one year since I applied for the account.

So as I see it, the question is this: Will Lloyds have:

A) Only paid me interest since my money was transferred in at the beginning or April '08 & then chosen to end the high fixed-rate deal on the anniversary of my application (in which case they'll have shafted me twice over).

or

Paid me 6.5% interest since the day of my application on 07/02/08 (even though my old provider were still paying me interest up until the transfer in early April '08) - in which case colour me happy.


Am not exactly sure how I'll be able to find this out prior to 7th Feb


But I suspect the above situation (these new letters being dated from the anniversary of when people applied for the 6.5% ISA as opposed to when their transfer actually went through) applies to other people on this thread.

How can you think that getting paid 6.5% on nothing is good news as in situation B?

In my case my funds got lost between NS&I and Lloyds for 4 weeks so I didnt get interest from either of them for that period.

Fella

so02see wrote: »

How can you think that getting paid 6.5% on nothing is good news as in situation B?

In my case my funds got lost between NS&I and Lloyds for 4 weeks so I didnt get interest from either of them for that period.

No not on nothing, on the entire balance.

whu

Bogof_Babe wrote: »

This won't apply though, as they are just re-investing the money they already have.

Think I'm going to go for it. 3.75% sounds pretty good at the moment.

Fair point but I just mentioned it as a point to take into account if you did not take up this offer and wanted to transfer the money elsewhere

Fella

OK I have just trawled through the 65 pages of the original thread on the Lloyds 6.5% ISA: http://forums.moneysavingexpert.com/....html?t=725969

Undoubtedly some people have been informed (misinformed?) that the entire 6.5% rate would be paid by Lloyds from the date of application. See posts:

#744
#747
#763
#911
#1041
#1061
#1239

However, having skimmed the entire thread I'm now pretty sure that's not what's going to happen. This is what I think the situation will turn out to be:

1. Lloyds are going to say that everyone's 12-month period at 6.5% began on the day of application, regardless of when the transfer actually went through.

2. Everyone is entitled to receive 6.5% interest from the date their old provider closed their old ISA. My guess is that this interest will be on most people's accounts automatically & won't need to be chased.

3. Everyone SHOULD also be entitled to the difference between the rate their old provider was paying & the Lloyds 6.5% rate - from the date that they filled in the Lloyds application until the date that their old provider closed their account. In my opinion this very probably WON'T happen automatically (I don't see how Lloyds would even know what rates the old providers were paying) & I suspect this will be a lot of hassle to obtain.

To summarize the above with a simplified example:

Joe has £30,000 an ISA with Toytown bank that pays 5% interest.

- On 1st March 2008 he applies for the Lloyds 6.5% ISA
- On 15th March 2008 his old provider closes his old ISA & sends Lloyds a cheque
- On 22nd March 2008 Lloyds process the cheque & open his new ISA

Lloyds should pay Joe:

- 1.5% interest on his balance for the period 1st March - 14th March
- 6.5% interest on his balance for the period 15th March - 21st March
- 6.5% interest on his balance for the rest of duration of his FRISA - which will be 22nd March 2008 - 1st March 2009

Note that if the above did happen then Joe would have benefitted from 6.5% for a 12-month period - albeit in a convoluted way.

However I will be amazed if the above all happens smoothly, especially the 1.5% bit.


cheers
Fella

whu

Fella wrote: »

OK I have just trawled through the 65 pages of the original thread on the Lloyds 6.5% ISA: http://forums.moneysavingexpert.com/....html?t=725969

Undoubtedly some people have been informed (misinformed?) that the entire 6.5% rate would be paid by Lloyds from the date of application. See posts:

#744
#747
#763
#911
#1041
#1061
#1239

However, having skimmed the entire thread I'm now pretty sure that's not what's going to happen. This is what I think the situation will turn out to be:

1. Lloyds are going to say that everyone's 12-month period at 6.5% began on the day of application, regardless of when the transfer actually went through.

2. Everyone is entitled to receive 6.5% interest from the date their old provider closed their old ISA. My guess is that this interest will be on most people's accounts automatically & won't need to be chased.

3. Everyone SHOULD also be entitled to the difference between the rate their old provider was paying & the Lloyds 6.5% rate - from the date that they filled in the Lloyds application until the date that their old provider closed their account. In my opinion this very probably WON'T happen automatically (I don't see how Lloyds would even know what rates the old providers were paying) & I suspect this will be a lot of hassle to obtain.

To summarize the above with a simplified example:

Joe has £30,000 an ISA with Toytown bank that pays 5% interest.

- On 1st March 2008 he applies for the Lloyds 6.5% ISA
- On 15th March 2008 his old provider closes his old ISA & sends Lloyds a cheque
- On 22nd March 2008 Lloyds process the cheque & open his new ISA

Lloyds should pay Joe:

- 1.5% interest on his balance for the period 1st March - 14th March
- 6.5% interest on his balance for the period 15th March - 21st March
- 6.5% interest on his balance for the rest of duration of his FRISA - which will be 22nd March 2008 - 1st March 2009

Note that if the above did happen then Joe would have benefitted from 6.5% for a 12-month period - albeit in a convoluted way.

However I will be amazed if the above all happens smoothly, especially the 1.5% bit.


cheers
Fella

My guess using that example is that the original provider will pay the interest until 15 March and then from then onwards lloyds will pay 6.5% for the rest of the term which I agree will probably start on 1 March

derrick

Fella wrote: »

How did u manage to get £50K in an ISA, they've only been around since 1999?

What trick am I missing....?

This can happen re their predecessors, TESSA's, being converted into ISA's, I have £42700 in the LTSB FRISA.


.

skitskut

The biggest plus point for me is that there is no 'transfer' involved. The ISA should seamlessly(?) transfer to the new deal. I had a nightmare transferring to Lloyds in the first place. Took nearly 3 months to transfer 1 ISA in and wasn't until nearly 4 months after applying I was getting the full 6.5%. The 1st month I had no money earning interest at all. The 3.5/3.75 rates are OK in the current climate - just a bit of a shock after the 6 percents not so long ago!