Lloyds TSB ISA -Interest rate question

Ifts

The date of maturity on my Lloyds 1 Year FRISA is today (8/4/10) but I topped it up with 2010/11 allowance on Tuesday (6/4/10) via faster payments from HSBC (had to do it in 2 payments as HSBC has put an on-line 5K limit on faster payments going out). I have opted to transfer my ISA from Lloyds to M&S after maturity.

When I called Lloyds last month I was offered something like 3.3% for their FRISA if I took up the offer then, but today I finally got a letter of maturity and it says:

I'm writing to let you know that your Fixed Rate Cash Isa has/will mature on 8 April 2010. Of course, we want to keep you as a customer and so we'd like to offer you a new variable Cash ISA Saver with an interest rate of 2.75% AER/tax free which includes a 12 month bonus of 1.75%.

To secure this offer we must receive the attached application form by 29 April 2010.

Alternatively, you can simply do nothing. In this case we'll automatically move your ISA balance to our standard variable Cash ISA. This currently gives 0.90% AER/tax free on balances from £10 to £20,999 or 1.40% AER/tax free on balances of £21,000 and above.

Glad I applied to transfer to the M&S ISA last month, before M&S dropped their rate.

KTF

I got a letter from them today telling me that my fixed rate had matured (which I already knew about) but that they couldnt tell me about what they could offer me because I had ticked the 'no jumk mail' option when I opened the account.

They then go on to say that if I fill in a form then they can tell me about the new products and I wont get any junk mail.

What a load of nonsense and based on the above I wont bother getting in touch with them as I am going to transfer it out now anyway.

Agent1013

I've now also had this letter offering the 2.75% rate, which I'm going to go with as it looks like the highest rate anyway that allows transfers in of 'old' ISA money so is pointless switching really. I'm also going to stick with my original plan and put this years allowance in A&L at 3.2% unless a better deal comes along in the meantime

Newly_retired

I did not get a maturity letter. I went into the bank on maturity day, but was told the interest had not gone in. It was due to go in later in the day. I was advised not to move the account until the interest was through. If it is not moved, it will attract 1% interest. I was also offered other possibilities but as I can get better rates elsewhere I will be transferring it out asap.

chaotic_j

My Lloyds TSB FRISA matures on 15th April..

I looked at the Santander 3.5% ISA before the beginning of the new tax year and I was going to put this years allowance in that.. but it got pulled..

So then after looking through a lot of information etc I decided I'd add this years allowance into the Lloyds TSB FRISA (soon to be regular ISA) and then transfer it all to M&S Money FRISA 3 years at 4%.. but sods law this has also been pulled..

Got the letter through regarding applying for Lloyds TSB instant access 2.75% so filled this out (as I didn't know yet about the M&S Money FRISA 3 years 4% being pulled..)

Not a clue what to do now.. seems I've missed the boat!

Iconic

chaotic_j wrote: »

Got the letter through regarding applying for Lloyds TSB instant access 2.75% s:(

I got a letter as well.

It said instant access but didn't quote a rate:(

It seems that there are two rates 1% and 2.75%.

I bet I will be getting the 1% so it's time to move to a better provider;)

roddydogs

More than £30,000 i was offered 3.3% fixed for 2 years, 160 days loss of interest if withdrawn before then. So no much more than the 2.75% with no notice, at least for the first year.

Geoffo_M

Lloyds deserve to lose all their ISA customers. Their lack of tranparency makes them untrustworthy. Their adverts make them sound like a caring bank, but they're not when it comes to ISAs. Ironic really because I have a current account with them and have no complaints. Other than being offered a financial review every time I go into the branch!

Mickygg

I have been reading about Lloyds, and can't believe what they are offering their customers. But having said that, Nationwide my BS are not offering much better - in fact you could say worse. They also are offering a variable rate e-ISA at 2.75%, a one year fix at 2.75% or a 4 year fix at 4.25%. There is nothing between 1 and 4 years on offer!!

Newly_retired

Still no interest showing up in my ISA which I believe matured last Friday! So I still can't move it out. Surely it should be showing up online by now?