Lloyds TSB ISA -Interest rate question

Agent1013

I'm new to posting in the forum, but been lurking here and visiting the main MSE site for a few years now. Got a quick question on my ISA I was wondering if anyone could help me with?

I took out a one year Fixed rate ISA with Lloyds TSB last April, and upto yesterday was earning a nice 3.5% This ISA has now matured and as I understand it from the T&C has now been moved to their ISA Saver which currently has a rate of 2.5% which includes a 1.5% introductory bonus. My question is will I be earning the full 2.5% or as I'm not a 'new' customer will I be earning 1% :mad: in which case I will be visiting the bank asap to arrange a better deal or switch to another provider. Can't seem to find any info on the website and haven't got time at the moment to call in to a branch but obviously don't want to be on the 1% rate for long. This years allowance is likely to be going into A&L or Santander, depending on which has a branch nearest to me probably.

Thanks

derrick

Agent1013 wrote: »

I'm new to posting in the forum, but been lurking here and visiting the main MSE site for a few years now. Got a quick question on my ISA I was wondering if anyone could help me with?

I took out a one year Fixed rate ISA with Lloyds TSB last April, this has roughly £28k in it and upto yesterday was earning a nice 3.5% This ISA has now matured and as I understand it from the T&C has now been moved to their ISA Saver which currently has a rate of 2.5% which includes a 1.5% introductory bonus. My question is will I be earning the full 2.5% or as I'm not a 'new' customer will I be earning 1% :mad: in which case I will be visiting the bank asap to arrange a better deal or switch to another provider. Can't seem to find any info on the website and haven't got time at the moment to call in to a branch but obviously don't want to be on the 1% rate for long. This years allowance is likely to be going into A&L or Santander, depending on which has a branch nearest to me probably.

Thanks

I am in a similar position, mine matures in May, I was told on the phone on Tuesday that when it matures, unless anything to the contarary, it will be put into their ISA saver at 1%, nothing was mentioned about any bonus.

Call them on freephone 0800 0150060

Agent1013

Thanks:D I'll give them a call but thats what I thought they would do:mad:. Looks like it is time to move it again then, could go for their fixed rate deal but don't really want to tie the money up for 2 years, although in all likeliness I probably wont use it so guess I could leave it <confusion>:( I'll have to give it some thought, but won't be settling for 1% that's for sure:eek:

wearside_2

It seems as if I am having as much trouble as others with my Lloyds FRISA. Both mine and my "Better Halves" FRISA's have just matured. I have telephoned regarding the new rate, been in to two branches and been told different rates. The last time at my local branch we were told that if we did nothing, both ISAs would transfer to one paying 2.5%. This is not great but not bad in today's climate. I telephoned today to confirm what rate we were getting and was told 0.9%:mad: The reason being that our wires had got crossed. I was assured that we are now both being paid 2.5% but as neither of us are convince we will probably move to First Direct paying 2.65%

financier_2

I have a 1yr fixed rate Lloyds ISA maturing in May too, I received a letter from them this morning saying they want to keep me as a customer "..blah blah.." and that they're offering me the chance of moving the money into a variable Cash ISA paying 2.75% (inc. 1.75% 12 month bonus) upon maturity.

A new customer can only get 2.5% according to their site. Interesting indeed.

Agent1013

I was offered a simular 'deal' last year to keep my business at 3.5% whilst new customers got something like 3%, but no simular deal this year or any other correspondence from them for that matter.

wearside_2

financier wrote: »

I have a 1yr fixed rate Lloyds ISA maturing in May too, I received a letter from them this morning saying they want to keep me as a customer "..blah blah.." and that they're offering me the chance of moving the money into a variable Cash ISA paying 2.75% (inc. 1.75% 12 month bonus) upon maturity.

A new customer can only get 2.5% according to their site. Interesting indeed.

Neither my wife nor I were sent a letter this year offering a higher rate for existing FRISA customers. Is the 2.75% for balances over a certain figure or is it for all accounts? I have had a FRISA since the 6.5% farce in 2008.

MME_2

wearside wrote: »

It seems as if I am having as much trouble as others with my Lloyds FRISA. Both mine and my "Better Halves" FRISA's have just matured. I have telephoned regarding the new rate, been in to two branches and been told different rates. The last time at my local branch we were told that if we did nothing, both ISAs would transfer to one paying 2.5%. This is not great but not bad in today's climate. I telephoned today to confirm what rate we were getting and was told 0.9%:mad: The reason being that our wires had got crossed. I was assured that we are now both being paid 2.5% but as neither of us are convince we will probably move to First Direct paying 2.65%

The only way you can be sure is to find out exactly what your ISA is now called (it may be on your maturity letter). If it's a Cash ISA it's 0.9%, if it's a Cash ISA Saver it's 2.5%.

wearside_2

MME wrote: »

The only way you can be sure is to find out exactly what your ISA is now called (it may be on your maturity letter). If it's a Cash ISA it's 0.9%, if it's a Cash ISA Saver it's 2.5%.

On our last visit we were not told what it would be called but would be 2.5% interest. I assume that as we were put on the o.9% rate we were put on a Cash ISA not the Cash ISA Saver. Either way neither of us are happy not being offered a rate similar to other FRISA holders!

sctb

I had a similar letter through today. My Lloyds TSB FRISA is maturing at the end of April. Lloyds TSB are still offering a decent FRISA rate, so I asked in a branch if I could - upon maturity - simply transfer it to their latest issue FRISA. No assistant could give me a straight answer (though no change there from years of banking with them.). They said my savings would most likely transfer to their variable cash ISA, and that I would have to transfer to the FRISA from there.

My maturing balance will - if I save my full ISA contributions for another couple of years - reach the government's guarantee threshold. I thought it might be sensible not to put all of my eggs in one basket.

I therefore asked my second question to the Lloyds assistant: can I transfer my ISA savings to their new competitive FRISA and - instead of contributing to it - make contributions to another competitive cash ISA at another bank?

The reason to do this is to maintain a decent tax free rate on the bulk of my savings - keeping within the government's guarantee threshold - while starting up a new ISA elsewhere (with my 2010/11 contributions).

Naturally, this brought a blank face (why do high street banks not even know the details of the products they sell?!). Calls to HMRC were similarly useless, as no-one picks up the phone.

Can anyone help? Posts on this forum and elsewhere suggest that it is possible to transfer to another cash ISA and open a new one elsewhere, as long as my contributions only go into one. Don't want to fall foul of the taxman! Thanks.

KTF

When the current fixed rate ISA matures it will change to an instant access ISA (normally overnight on the date of maturity). At this point you can add more money and/or sigh up for another fixed rate ISA with them.

If you do not plan to add any more money to the matured ISA then you can move this to their current 2 year fixed one and then open another ISA at a different bank for this years allowance.

Edit: I will probably move my matured Lloyds ISA to the the Halifax as its still 2 years but at a better rate.

As for this years allowance I am debating just keeping it in my Lloyds Vantage account as the 4% (3.14% after basic tax) its earning is better than most of the easy access offers at the moment and then open an ISA next March when the better rates come along to soak up people who havent opened them yet.