Lloyds Fixed Rate ISA - 3.2%

h5djr

I have over £30k in an existing Lloyds Fixed Rate ISA (at 6.5%) which matured yesterday. I telephoned Lloyds ISA Centre to transfer the account to a new Fixed Rate ISA at the current 3.2%. They told me the final amount of interest that would be added to the account having already had two interest payments in February. The whole transaction was very straight forward and took about 2 minutes on the phone and all the account numbers stayed the same.

If you are in a similar position the number to ring is 0800 015 0600.

savetilibleed

I was looking at this ISA too at 3.2%. I can't understand why it is not mentioned Martins ISA article.

I have an e-ISA with Yorkshire BS with about £46000 in it. The rate for a variable is not too bad still at 2.75%. I guess it'll come down a bit more at some point and perhaps stick :rolleyes: . But what concerns me about transferring out to a fixed ISA is that in a year it will need moving again and it was only last June I moved to YBS, and there was hassle/delay due to a mistake by Abbey.

Perhaps the Natwest e-isa would make it more worthwhile at 3.51% variable. Why so high now I wonder. Is this to tempt people in until they drop the rates?

h5djr

Lloyds have now changed it's fixed rate ISA tiered interest rate so that from £9,000 to £30,000 the interest rate is 3.0% and above £30,000 stays at 3.20%.

savetilibleed

I'm still pondering what to do. Either move all £48,268 (interest recently added) into a LTSB FRISA at 3.2% or split the move between LTSB and NatWest, say £30,000 to LTSB & £18,268 to Natwest. Then I'm fixed for the £30k for a year but flexible and accessible with the rest.

If all is moved to LTSB there will be £1545 interest, but if all is moved to NatWest at today's rate, there will be £1694 (but it might drop). By splitting £30,000 to LTSB & £18,268 to Natwest there will be £1601 total interest at LTSB fixed and todays NatWest rates. Not too bad a trade-off. Compared with what YBS interest at 2.25% will be from 29/3/09 - £1086.

Confused meself now well, getting late

oxenryd

savetilibleed wrote: »

I'm still pondering what to do. Either move all £48,268 (interest recently added) into a LTSB FRISA at 3.2% or split the move between LTSB and NatWest, say £30,000 to LTSB & £18,268 to Natwest. Then I'm fixed for the £30k for a year but flexible and accessible with the rest.

If all is moved to LTSB there will be £1545 interest, but if all is moved to NatWest at today's rate, there will be £1694 (but it might drop). By splitting £30,000 to LTSB & £18,268 to Natwest there will be £1601 total interest at LTSB fixed and todays NatWest rates. Not too bad a trade-off. Compared with what YBS interest at 2.25% will be from 29/3/09 - £1086.

Confused meself now well, getting late

To confuse you more lol have a look at First Direct 3.1 Fixed but you can transfer out anytime no penalties

KTF

FD require you to open one of their current accounts and fund it with 1500 a month to open that ISA.

oxenryd

KTF wrote: »

FD require you to open one of their current accounts and fund it with 1500 a month to open that ISA.

No, I ve got it and I definitely don't bank with them. Brand new customer.

savetilibleed

KTF wrote: »

FD require you to open one of their current accounts and fund it with 1500 a month to open that ISA.

Not for me either.

KTF

How are you going to fund it then?

savings can only be paid by standing order from your first direct 1st Account for the first 12 months.

From: http://www.firstdirect.com/savings/regular-saver-isa-overview.shtml

J45

KTF wrote: »

How are you going to fund it then?

From: http://www.firstdirect.com/savings/regular-saver-isa-overview.shtml

thats a regular isa saver not a standard cash isa

sheslookinhot

My 6.5% FRISA matured yesterday, good sum of interest. :j

Phoned Lloyds tonight at 7:59pm, they close at 8, and got straight through and to a nice customer advisor, told her I wanted to transfer to the new 3.2% ISA, actually 3.0% given that I was transfering just over 20k. A few questions and it was all done and dusted.

Great service :T