Leeds 2.8% 5-Year Cash ISA query

FlatFour

Hey all,

Well, I've been a little more pro-active this year re: ISA's...but things are not going smoothly!

I initially contacted Leeds at the end of March regarding their 2.8% fixed rate 5 year ISA offer - the one recommended here. I chose them because I wanted to take advanage of the fact they took transfers - I have a couple of old ISA that have poor rates now.

Despite being some time before the deadline for 2013/14 ISA's I was refused as they said they "didn't have time to process the paperwork in the time left" - a fair enough reason I guess. So, assuming all ISA's would be like this, I lost last years allowance. Darn.

Anyway, Leeds said I could still open a 2014/15 ISA with the same 2.8% 5-Year deal, but it'd take them a few days to prepare the new paperwork due to the rule change this summer, allowing us to put more money in. So I went for that.

Got the paperwork today, called them up with a query regarding proof of id - with everything being on-line these days, I needed to request a paper copy of my most recent bank statement it turns out - they said the product was withdrawn! I explained to them how I'd been waiting on them for some time - which is on their records one assumes - so, after speaking to her manager, they agreed to honour the product. Nice.

The thing is, going through all the paperwork, there is NO mention of exactly which product the paperwork is for. The letter is headed "Thank you for your call and as promised please find the enclosed details of the product you requested" - they key being those last three words - however, I'd have expected the paperwork to explicitly detail the product. Considering this product is considered "closed" now - except for those like me for whom things are still being processed - I'm a little concerned.

I also must admit that the whole paperwork thing really isn't simple. I get the whole new "anti money-laundering" thing, I suppose, however I have no current passport (just one of those things, being signed off after a work injury means no travel for me) plus I have the older, non-photo, driver license which is unacceptable. I have a birth certificate, but I'm not under 18 so that's not valid. So, I'm down to a manually requested printed bank statement (printed online statement NOT accepted) and my latest tax code letter. Need to wait for the Bank Statement to arrive...*sigh*

So, is this normal now for setting up an ISA? Previously I'd done them online without issue, though that was with my Bank (Barclays) so I'd expect that to be easy - just wish they offered decent rate ISA's as they'd be an easy choice.

Anyway, I welcome any comments thoughts.

Cheers,

F.

alanq

[STRIKE]Leeds BS 5-year ISA rate for 2014-15 was 3%. I cannot see that any more on the Leeds website so it seems that too has been withdrawn (or at least suspended).[/STRIKE]

Leeds BS has done you a favour. You can get 3% for a 5-year ISA with Skipton.

Requirements for identity checks are a great mystery. I have had several Close Brother postal accounts over the years yet when I applied for an online account they wanted proof of identity. I cancelled my application and continued to open postal accounts without problems. Go figure!

FlatFour

alanq wrote: »

Leeds BS 5-year ISA rate for 2014-15 is 3% so it just as well you are not being offered 2.8%.

Really? Wow, they didn't mention that when I spoke to them. I asked if it was basically the same deal & they said yes. I'll pop on their web site and try to find the exact product for reference.

Edit: Hmm, I cannot find any mention of a 3% 5-Year product, just those listed here - possibly I'm missing something, though the product IS discontinued I suppose, I just expected to see something close...I might look through their discontinued product list.

Cheers,

F.

alanq

Sorry I had a senior moment. I was thinking of Skipton's 5-year offering!

I have amended my post accordingly.

Leeds BS (and this time I do mean Leeds BS!) has been taking a very long time to open Members' Loyalty accounts which by definition are only available to existing members. So, leaving aside the matter of identity checks, I am not surprised that there was a delay in processing your ISA application during the end of year rush.

greenglide

FlatFour wrote: »

Well, I've been a little more pro-active this year re: ISA's...but things are not going smoothly!

I initially contacted Leeds at the end of March regarding their 2.8% fixed rate 5 year ISA offer - the one recommended here. I chose them because I wanted to take advanage of the fact they took transfers - I have a couple of old ISA that have poor rates now.

To me being pro-active means opening ISAs at the beginning of the year. Opening in March is not at all pro-active.

FlatFour wrote: »

Despite being some time before the deadline for 2013/14 ISA's I was refused as they said they "didn't have time to process the paperwork in the time left" - a fair enough reason I guess. So, assuming all ISA's would be like this, I lost last years allowance. Darn.

Why did you not do it on-line? This usually open the account "instantly" so they can't change their minds? Especially useful if at the end of the year.

FlatFour

greenglide wrote: »

To me being pro-active means opening ISAs at the beginning of the year. Opening in March is not at all pro-active.



Why did you not do it on-line? This usually open the account "instantly" so they can't change their minds? Especially useful if at the end of the year.

Well, to answer your first question, I had an accident so have been unable to do pretty much anything, so last year slipped by. Though, traditionally, I did do my ISA's near the end of the year due to when prior products expired - well, the interest rates dropped, but I'm sure you know what I mean.

Not an option to do it online, I did query this and they said new regulations mean I have to fill out forms and post in proof of ID. I got the impression that this was something fairly new, as I'd never done it before. As I said in my original post, with pretty much everything being online and paperless these days (at least in my world) this was quite a surprise, hence that part of my query. Note though that I am a new customer to Leeds, so they don't know me. If I'd already been a customer maybe it'd have been different.

@alanq: thanks for the clarification - I'll check out Skipton now...

Edit: Interestingly other providers still say they offer the ability to open online - I guess the "new rules" Leeds mentioned are just their new rules, not some new legislation as they seemed to imply.

F.

greenglide

FlatFour wrote: »

Not an option to do it online, I did query this and they said new regulations mean I have to fill out forms and post in proof of ID.

It sounds like a cop out from the leeds to me!

Some companies take the online application and you print it and post it to them, others do the whole transaction online.

They all seem to take a different stance on the anti-moneylaundering rules. They are required to check but the way in which the do it is left up to them.

alanq

Unless anything has changed recently Leeds BS is bad for opening online accounts. When I wanted to open a new online account and use funds from an existing Leeds BS online instant access account I had to transfer the funds out of Leeds first as they required a printed application accompanied by a cheque!

FlatFour

I'm actually reconsidering applying for the Leeds ISA now, checking out their web sites both Skipton and Newcastle offer a much easier application process. I'm actually leaning more to the latter, due to their less stiff early withdrawal penalties, plus Skipton appear to be an "all or nothing" withdrawal, with no partial option. While I don't plan to take any of the money out early, it's always nice to have a plan just in case.

Cheers,

F.

nearlyretired2004

....if it helps and for what its worth...


I've always found Newcastle's support to be excellent when I've had accounts with them in the past (in case you ever need to use it....)

FlatFour

nearlyretired2004 wrote: »

....if it helps and for what its worth...


I've always found Newcastle's support to be excellent when I've had accounts with them in the past (in case you ever need to use it....)

It's always good to hear direct feedback of others experience, it's very valuable to me, so thanks for that.

F.