Lloyds 2 Year Fixed Rate Cash ISA

Tom_Spilsbury

Hello there –

I wonder if anyone can help me with an answer to a question.

I currently have a Lloyds Cash ISA, which I opened in March 2009. However the interest rate is only 0.9%.

There are now much better rates on Lloyds' 2 Year Fixed Rate Cash ISAs, but for some reason I'm not 'eligible' for this. Does anyone know why that might be?

Maybe because I have already paid into my existing Lloyds Cash ISA this year? But why can't I just open a Fixed Rate Cash ISA, and transfer my current existing ISA into it? I'm a bit confused why I'm not allowed to open an ISA with a much better interest rate.

Thanks!

le_loup

You can:
"Transfer your existing ISAs to maximise your tax free interest"
that's a paste from their website. Either you have asked them the wrong question or the staff that you spoke to don't understand their own products. Try again.

iereboy

The short answer is yes you can.

The long explaination is: When you first opened the ISA, in the 1st year there was a bonus rate, after the year was up and you got your interest, it changed into the non marketed basic cash Isa which pays 0.9% interest for balances under 21k. The rate is totally RUBBISH!

If you have not paid into the ISA for some time, it becomes Dormant and telephone banking has to send you an Isa restart subscription form. Once you get it and return it, ring them up a few days later, make a deposit of £1 to get it back up and running. You can then change your ISA over to the ISA saver or the Fixed rate ISA.

Lloyds telephone banking staff tend not to have a good knowledge of the ISA process. (I know- don't even start! lol) The branch will do it for you instantly if you want.

Speak to savings on 0800 015 006 - they probably wont have a clue on a Sunday if its Sunday staff!

A word of advice though: DO NOT HAVE ANY OF LLOYDS ISA'S.

Read Kazza's list for a comprehensive list of top paying ISA's!