Mis-sold bond?

HampshireH

dhuggybear said:

dunstonh said:

You explained the scenario but nothing about why you think it was missold.  So, why do you think it was missold?

Money took out of an ISA and then put in a bond which would be subject to tax. Can't think of any reason why this would have been offered as an option and had a quick look and Isa rates were 5+% in 2023 makes no sense

Doesn't make it mis sold. They have multiple options available to lots of people for different reasons

What is on the market will suit some and not others. This sounds like an error on your dad's part rather than the bank. As difficult as that may be to accept for them. They would also have received statements with the product written on them over the last two years

artyboy

dhuggybear said:

dunstonh said:

You explained the scenario but nothing about why you think it was missold.  So, why do you think it was missold?

Money took out of an ISA and then put in a bond which would be subject to tax. Can't think of any reason why this would have been offered as an option and had a quick look and Isa rates were 5+% in 2023 makes no sense

Well if you can find any paperwork from the bank suggesting a non-ISA account as a potentially suitable home for maturing ISA funds, then that would be of some interest, as I've never seen such a thing.

Or if you can somehow prove that this move was a 'default' action in the absence of specific instructions at maturity, that would be of even greater interest.

But if not then you're just speculating on the motives behind an action that one of your parents took themselves.

dhuggybear

masonic said:

dhuggybear said:

dunstonh said:

You explained the scenario but nothing about why you think it was missold.  So, why do you think it was missold?

Money took out of an ISA and then put in a bond which would be subject to tax. Can't think of any reason why this would have been offered as an option and had a quick look and Isa rates were 5+% in 2023 makes no sense

According to the wayback machine, the best rate Lloyds were offering on an ISA was their 2 Year Fixed Rate Cash ISA at 2.90% (equivalent to 3.63% taxed at basic rate), so a taxable bond at 4% would be the better option as long as only basic rate tax applied. Some of the interest probably would have been tax free.

https://web.archive.org/web/20230228004412/https://www.lloydsbank.com/savings.html#c_115_accordion_2305

Their Cash ISA Saver at the time paid just 0.65%!

Looks like a sensible choice for someone wishing to continue to save with Lloyds. It is the choice to stick with Lloyds that was unwise, but you cannot reasonably expect Lloyds to recommend he go elsewhere. Choice of provider is 100% his responsibility.

Also, top ISAs 2 years ago can be found in the MSE weekly tips: https://www.moneysavingexpert.com/tips/2023/03/08/

Quite a bit below 5%. The Lloyds bond is not a best buy, but it is by no means derisory compared with the likes of SmartSave or Atom Bank at ~4.4%. The Virgin or Shawbrook 2 year fixed ISA might have been a better shout, but would he have wanted this hassle?

I'll stand corrected I just did a Google search and the 5% was what  popped up on results