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LTSB FR ISA matures soon

135

Comments

  • Baldur wrote: »
    It depends on the fixed rate ISA's Ts & Cs

    Some permit easy access, e.g. Halifax offered a 3% fixed rate last year, which offered penalty-free easy access and First Direct are offering a similar one at 2.75% currently, while M&S are currently offering a 4-year FRISA at 4% which permits early access at the cost of £100.


    Is this one not fixed for only 3 years at 4% ?
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  • Baldur
    Baldur Posts: 6,565 Forumite
    Is this one not fixed for only 3 years at 4% ?
    Probably - my mind was no doubt concentrating on the number '4' (%) as I was weighing up at the time of posting that I would receive over £300 more by using the M&S account for one year and paying the £100 'escape fee' than accepting LTSB's 3.1% variable rate offer.
  • Baldur wrote: »
    It depends on the fixed rate ISA's Ts & Cs

    Some permit easy access, e.g. Halifax offered a 3% fixed rate last year, which offered penalty-free easy access and First Direct are offering a similar one at 2.75% currently, while M&S are currently offering a 3-year FRISA at 4% which permits early access at the cost of £100.
    Just looked at the Ts & Cs online (and printing it now). You can make withdrawals or transfers out but with the loss of 90 days interest on tha amount withdrawn or transferred from the LTSB FRISA. So I don't think I'll be doing that! I also have that 3% Halifax ISA you mention that matures end of April 2010.
  • Baldur wrote: »
    Probably - my mind was no doubt concentrating on the number '4' (%) as I was weighing up at the time of posting that I would receive over £300 more by using the M&S account for one year and paying the £100 'escape fee' than accepting LTSB's 3.1% variable rate offer.


    Does the early closure option also mean a transfer to another provider or actual closure of the account. This one interests me but I think I may check the defintion with M&S.
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  • Baldur
    Baldur Posts: 6,565 Forumite
    edited 23 February 2010 at 8:31AM
    Does the early closure option also mean a transfer to another provider or actual closure of the account. This one interests me but I think I may check the defintion with M&S.
    That's why i was musing about the possibilities.


    <Edit> Having had another browse of the Ts & Cs ( http://money.marksandspencer.com/pdf/ISFRTermsAndConditions.pdf ), specifically Clauses 8(ii) & (iii), you can switch the funds into the variable rate option, the £100 fee being deducted in the process, and then transfer the ISA.
    (ii) You may switch money held in your Account from any of the Fixed Rate Bonds into the Variable Rate Savings Option at any time. Except for where the switch is made on or after the Maturity Date, this will be subject to the withdrawal charges set out in paragraph 9(ii) below.

    (iii) Instructions to switch from the Fixed Rate Savings Option to the Variable Rate Savings Option under 8(ii) above, will be completed on the day we receive your instructions. Interest calculated up to the day we receive your instructions will be
    added to the amount to be switched from the Fixed Rate Savings Option. Any withdrawal charges set out in paragraph 9(ii) below will be deducted from the amount to be switched. The amount switched will be deposited into the Variable Rate Savings Option on the same day, and the calculation of interest at the variable rate will commence on the next day
  • KTF
    KTF Posts: 4,855 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Like last year I have not had any letter from Lloyds yet so it doesn't look like I will be offered this 3.1% or 3.5% deal.

    Am thinking about moving my current fixed ISA from Lloyds to the Bank of Cyprus 3.3% 1 year fix - http://www.bankofcyprus.co.uk/main/main.aspx?id=18301 instead.
  • KTF wrote: »
    Like last year I have not had any letter from Lloyds yet so it doesn't look like I will be offered this 3.1% or 3.5% deal.

    Am thinking about moving my current fixed ISA from Lloyds to the Bank of Cyprus 3.3% 1 year fix - http://www.bankofcyprus.co.uk/main/main.aspx?id=18301 instead.


    I have heard nothing also, we have two isa's at £23k and 10K, will see them next week.

    Watch the security of the Cyprus bank, not covered by the UK protection scheme
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    Vocational freedom has arrived
  • pweb
    pweb Posts: 7 Forumite
    just as i decided not to bother with Lloyds since they only invited my partner to continue with fixed term isa and excluded me, i have received a letter inviting me as well.
    but now i wonder if 3% fixed for a year is a good deal after all. any ideas?
  • Baldur
    Baldur Posts: 6,565 Forumite
    pweb wrote: »
    just as i decided not to bother with Lloyds since they only invited my partner to continue with fixed term isa and excluded me, i have received a letter inviting me as well.
    but now i wonder if 3% fixed for a year is a good deal after all. any ideas?
    The A&L/Santander variable rate product @ 3.5% currently (with a 12 month guarantee of BoE base rate + 3%) is a much more flexible offering.
  • rb10
    rb10 Posts: 6,334 Forumite
    Baldur wrote: »
    The A&L/Santander variable rate product @ 3.5% currently (with a 12 month guarantee of BoE base rate + 3%) is a much more flexible offering.

    That account does not permit transfers in, so is only suitable for 2009/10 allowance (if not already subscribed) and 2010/11 allowance (if the account's still available on 6th April).
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