ISA - Lower interest rate after 1 year?

Marvqn1

The 1 year fixed rate cash ISA with Lloyds has an interest rate of 4.25% AER.

However, they say that after 1 year, the ISA changes to a Instant Cash ISA with an interest rate of 1.10% AER.

Does this mean that after 1 year, its not possible to get a higher interest rate with an ISA than 1.10% AER?

jimjames

After 12 months you can transfer to another ISA and get a better rate, no need to stick with Lloyds

Ayr_Rage

You'll have to transfer your funds to a better paying account, either with Lloyds or another institution once the 1 year account matures.

Marvqn1

Ayr_Rage said:

You'll have to transfer your funds to a better paying account, either with Lloyds or another institution once the 1 year account matures.

Does that mean that with the 1 year fixed rate cash ISA, after 1 year could I change to a different ISA with Lloyds that has an interest rate of 4%+ or would I need to change to a regular savings account.

Ayr_Rage

You can TRANSFER those funds to ANY ISA you wish and they will remain free from tax.

Marvqn1

Ayr_Rage said:

You can TRANSFER those funds to ANY ISA you wish and they will remain free from tax.

I understand I can transfer the funds.

However, the issue is, I don't have a passport or drivers licence so that makes it very difficult to move to any other savings provider. So I'm wondering if its feasible to get a 4%+ interest rate with Lloyds after a year.

TheSpectator

Marvqn1 said:

Ayr_Rage said:

You can TRANSFER those funds to ANY ISA you wish and they will remain free from tax.

I understand I can transfer the funds.

However, the issue is, I don't have a passport or drivers licence so that makes it very difficult to move to any other savings provider. So I'm wondering if its feasible to get a 4%+ interest rate with Lloyds after a year.

Why not look on their website or app to see what products they currently offer. Spoiler alert, there is a 1 yr fix at 4.25%

Ayr_Rage

Marvqn1 said:

Ayr_Rage said:

You can TRANSFER those funds to ANY ISA you wish and they will remain free from tax.

I understand I can transfer the funds.

However, the issue is, I don't have a passport or drivers licence so that makes it very difficult to move to any other savings provider. So I'm wondering if its feasible to get a 4%+ interest rate with Lloyds after a year.

Nobody can guess what Lloyds will be offering at the end of your term.

Get a DL or passport in the mean time and that'll give you options with other institutions.

eskbanker

TheSpectator said:

Marvqn1 said:

Ayr_Rage said:

You can TRANSFER those funds to ANY ISA you wish and they will remain free from tax.

I understand I can transfer the funds.

However, the issue is, I don't have a passport or drivers licence so that makes it very difficult to move to any other savings provider. So I'm wondering if its feasible to get a 4%+ interest rate with Lloyds after a year.

Why not look on their website or app to see what products they currently offer. Spoiler alert, there is a 1 yr fix at 4.25%

Isn't that the very one OP is looking at opening, and they're just wondering what happens in a year's time?

Spoiler alert: nobody knows, but if Lloyds are still doing 4%+ accounts at that stage, it should be possible to transfer into them....

TheSpectator

eskbanker said:

TheSpectator said:

Marvqn1 said:

Ayr_Rage said:

You can TRANSFER those funds to ANY ISA you wish and they will remain free from tax.

I understand I can transfer the funds.

However, the issue is, I don't have a passport or drivers licence so that makes it very difficult to move to any other savings provider. So I'm wondering if its feasible to get a 4%+ interest rate with Lloyds after a year.

Why not look on their website or app to see what products they currently offer. Spoiler alert, there is a 1 yr fix at 4.25%

Isn't that the very one OP is looking at opening, and they're just wondering what happens in a year's time?

Spoiler alert: nobody knows, but if Lloyds are still doing 4%+ accounts at that stage, it should be possible to transfer into them....

That will teach me to skim read, I thought it was about to mature, apologies.

In that case pass me my crystall ball.

poppystar

Marvqn1 said:

Ayr_Rage said:

You can TRANSFER those funds to ANY ISA you wish and they will remain free from tax.

I understand I can transfer the funds.

However, the issue is, I don't have a passport or drivers licence so that makes it very difficult to move to any other savings provider. So I'm wondering if its feasible to get a 4%+ interest rate with Lloyds after a year.

I’m not sure why the lack of photo ID would stop you going elsewhere. Is this an experience you’ve had? I’ve opened two ISAs recently and neither wanted photo ID - just NI number, which I assume you have, and details of how long I’ve been at my current address. No further ID checks required. 

PS I have a passport but I only renewed it for such ID purposes. Yes, it works out at maybe £10-15 pounds a year but it’s a godsend. I actually had to use it with Lloyds as my account was locked as a fraud precaution (not my fault but a Lloyds system hiccup!) and they needed photo ID to unlock it. So do think about investing in one.