Lloyds Cash ISA trick

gadgetmind

fairleads wrote: »

Its obviously from someone with a vested interest in the financial services industry.

Like many things that seem obvious to some people, it's wrong: shen it comes to the financial industry, I play the humble role of Joe Public.

opinions4u

fairleads wrote: »

Markie11, good on you and ignore the above comment. Its obviously from someone with a vested interest in the financial services industry. The forum abounds with them.

Like you, I can't change the way it is.

But I can sure as hell maximise the system for my own benefit.

I encourage others to do the same.

Sometimes an insight from those who have worked (note the tense) in the industry can help.

fairleads

gadgetmind wrote: »

Like many things that seem obvious to some people, it's wrong: shen it comes to the financial industry, I play the humble role of Joe Public.

My comment was directed at opinion4u. Quite an apt name really because that's all their comment is, an opinion.

gadgetmind

fairleads wrote: »

My comment was directed at opinion4u. Quite an apt name really because that's all their comment is, an opinion.

Oh, sorry about that. No offence intended or taken.

opinions4u

fairleads wrote: »

My comment was directed at opinion4u. Quite an apt name really because that's all their comment is, an opinion.

Aren't most things posted on messageboards precisely that? You have you opinions too.

One comment was a question.

The point about many people not being bothered enough to care is pretty much fact.

In my opinion.

HUMBUG

My pensioner parents weren't sent a letter advising reduction in interest rates for their cash isa . Apparently this is something they must do according to the fsa (who I contacted at the time a year ago). Because they didn't, my parents did not have the opportunity to select a fixed rate ISA (at the higher rate 3.1%) as soon as the previous ISA fixed maturity date had ended. So their 80k savings was only getting interest of 0.5% for 3 months instead of 3.1%. I managed to convince the bank manager the errors in their ways and he agreed to convert their ISA's to the 2 yr fixed rate and pay compensation for the lost interest. Guess what ? They have been levying interest at 2.8% for the last year because they only levied at the interest rate from the time the ISA's got converted to fixed rate (ie.not the rate of 3.1% that it was 3 months earlier). I didn't notice this but my old man did (just by accident). None of their statements mention the interest rate that should be levied , they just show the gross interest and you have to work it out yourself. What concerns me is why there is such a disconnection between the local branches and the teams in Birmingham who administer the cash isa's. They just don't communicate at all and we the customers are having to check the figures to spot their errors. Its a disgrace that any bank can be so sloppy and I have lost all confidence in them.

MoneySaverLog

Not just Llloyds TSB, all the banks and building societies do it. You get a nice rate at the start of the year, then they drop it in the hope you don't notice.

bendix

As opinions4u has tried to state patiently, it is not a trick. It is clearly there for everyone to see in the terms and conditions of the accounts you open. It is up to you to be aware of it.

And before you ask, no I don't work in the financial services industry and never have.

I am, though, heartily sick of hearing people whine about things which can easily be addressed if they could be bothered and took an interest, rather than defaulting to the usual nonsense about scams and tricks.

opinions4u

HUMBUG wrote: »

My pensioner parents weren't sent a letter advising reduction in interest rates for their cash isa .

But were they advised when they took the account that the rate would drop to x.x% after 12 months? If so, they were given a year's advance notice.

Apparently this is something they must do according to the fsa (who I contacted at the time a year ago).

There are different regulations covering different accounts. But if a bank has made it quite clear what happens, when it happens and what the rate will be they can reasonably argue that giving a year's notice of the change is well in excess of what regulations require.

Because they didn't, my parents did not have the opportunity to select a fixed rate ISA (at the higher rate 3.1%) as soon as the previous ISA fixed maturity date had ended.

What was stopping your parents taking action? They weren't prohibited from taking an active interest in their savings. There was nothing to stop them swapping to a higher fixed or variable rate with another provider. There is no regulation that says "you have to stay in a crap account unless the bank sends you a letter".

So their 80k savings was only getting interest of 0.5% for 3 months instead of 3.1%. I managed to convince the bank manager the errors in their ways and he agreed to convert their ISA's to the 2 yr fixed rate and pay compensation for the lost interest. Guess what ? They have been levying interest at 2.8% for the last year because they only levied at the interest rate from the time the ISA's got converted to fixed rate (ie.not the rate of 3.1% that it was 3 months earlier).

Well the branch can only sell the product that is available at that point in time.

I didn't notice this but my old man did (just by accident).

Buy him a diary for Christmas. They're in WH Smith already. He can make a note of key dates in there. That will avoid him having accidents.

None of their statements mention the interest rate that should be levied , they just show the gross interest and you have to work it out yourself.

Well if they show the gross rate surely that's all that's needed for an ISA?

What concerns me is why there is such a disconnection between the local branches and the teams in Birmingham who administer the cash isa's. They just don't communicate at all and we the customers are having to check the figures to spot their errors. Its a disgrace that any bank can be so sloppy and I have lost all confidence in them.

There hasn't been an error as far as I can see. They've paid what they said they would pay when they said they would pay it.

I really do wish people would take responsibility for their own money instead of expecting profit making banks to be charities.

(By the way, I'm fairly certain Lloyds TSB do send letters out on both their fixed and variable ISAs when particular rates come to an end. Your whole rant may simply be because Dad has filed his letter under "junk")

blinko

typicval banks , XYZ account is only good for a 12 month period. What can you do, if you snooze you lose, ultimately its upto us to take responsibility for our money