2009 Lloyds TSB ISA

Just_landed

Fella wrote: »

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

What trick am I missing....?

The bit your missing possibly is that it wasn't this government that started Isa's all be be it in another name :- Tessa's in 1989 ish. Labour changed the name to make it look like it was their idea, dont forget the motto spend, spend, spend not save, save, save.:cool:

Wikipedia is a wonderful place it says tessa's came into effect January 1991.

ffacoffipawb

Fella wrote: »

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

What trick am I missing....?

Fully funded to £3,000 or £3,600 each year.

Plus £9,000 capital from a matured TESSA.

Plus interest over the whole period.

Approx £50.5k as at April 2008, including this year's subscription.

Slightly larger amount held in a share ISA (including old PEP funds).

surfcat

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

I think you're over complicating it a little. If you look at my post on page 23 of the original mammoth thread, it states that the FRISA T&C begin the account at the date of the first deposit. I cannot see how they get round that.

I've just been on the phone to Lloyds regarding the maturity letter (which says Xth February 2009), whereas my transfer went in on Yth March 2008. I didn't mention the T&C or anything and the assistant on the phone could see no reason why it shouldn't mature on Yth March 2009.

The branch my isa is held with are going to investigate and call me back tomorrow. 3 cheers to the guy on the phone however, he was very efficient and noted all the details down.

SC

whu

surfcat wrote: »

I think you're over complicating it a little. If you look at my post on page 23 of the original mammoth thread, it states that the FRISA T&C begin the account at the date of the first deposit. I cannot see how they get round that.

I've just been on the phone to Lloyds regarding the maturity letter (which says Xth February 2009), whereas my transfer went in on Yth March 2008. I didn't mention the T&C or anything and the assistant on the phone could see no reason why it shouldn't mature on Yth March 2009.

The branch my isa is held with are going to investigate and call me back tomorrow. 3 cheers to the guy on the phone however, he was very efficient and noted all the details down.

SC

Hi - as I mentioned in the original thread I was told by the branch that the 12 month period would begin on the date of the first deposit but then when I spoke to the complaints dept dealing with ISA's (about delays in transfers) I mentioned this and they said that the branch got it wrong and the 12 month period would start from the FRISA opening date - would be interested to see what they say when they get back to you

michaels

Under the ISA rules if we do sign up to this but change our mind before 6th April can they actually hold us to it - especially if our original 12 month period does not end till April?

WGG1848

I also received the offer but am of the opinion that other offers will appear, after all many companys are offering one year plus deals to get new customers in the hope that after 12 months some will just forget and get sucked into poor rates. So much for customer loyalty.

pioneer

Also one thing to consider is that if you change your mind after seeing better rates it will cost you 90 days loss of interest; which COULD be your last 90 days at 6.5% !!!!!!!!!!

Ummmm not sure about this.

michaels

So is the way forward on this to find out when the previous ISA was actually transferred in and what interest rate was being paid on that isa at the time between the LTSB isa being opened and the transfer happening and then claim the difference between this and 6.5% from LTSB?!

Or are LTSB honouring 12 months from the transfer date if pushed?

Gordon_T_2

Had a good think about this one and wanted to know a little more.
I have an old friend who works at my local branch so I nipped in to see her. She told me `unoficially` although she worked for them, the general concensus from her and the other workers is that its a ploy to get people on board the new product. The last thing the bank wants in the present climate is for everyone charging off with their money to some other investor. Hence getting this new deal out quicker than anyone else. They are hoping to keep current investors under their wing. She did mention to me that current investors will be trapped in by using the loss of 90 days interest if they were to take up the new offer and then later change.
This has quite rightly been picked up on by previous posters. I think that reading between the lines, that there will be better deals to be had as it gets closer to the cut off point in April. Banks and Financial Instsitutions are clammering for cash and new deals will inevitably come to the fore. Whats the betting some good deals will be had especially for those with a fair amount to invest. LTSB were quick off the mark to launch this product but I have a sneaky feeeling it may go pear shaped for them especially in these more trying times. As for me going for it, sorry, but a definate NO.

whu

Gordon_T wrote: »

Had a good think about this one and wanted to know a little more.
I have an old friend who works at my local branch so I nipped in to see her. She told me `unoficially` although she worked for them, the general concensus from her and the other workers is that its a ploy to get people on board the new product. The last thing the bank wants in the present climate is for everyone charging off with their money to some other investor. Hence getting this new deal out quicker than anyone else. They are hoping to keep current investors under their wing. She did mention to me that current investors will be trapped in by using the loss of 90 days interest if they were to take up the new offer and then later change.
This has quite rightly been picked up on by previous posters. I think that reading between the lines, that there will be better deals to be had as it gets closer to the cut off point in April. Banks and Financial Instsitutions are clammering for cash and new deals will inevitably come to the fore. Whats the betting some good deals will be had especially for those with a fair amount to invest. LTSB were quick off the mark to launch this product but I have a sneaky feeeling it may go pear shaped for them especially in these more trying times. As for me going for it, sorry, but a definate NO.

Interesting post but given that most people think there will be another rate cut couldn't these be decent rates especially for people with a decent lump to put into an ISA - just a thought