LloydsTSB Fixed rate Isa 6.5%

surfcat

Has some fun this morning trying to open one- although to be fair I wasn't really expecting that I could just walk in on a Saturday and get it all done.

Went to branch. Waited at reception for a bit looking at what I can only describe as schoolgirls in travel agent uniforms (those really cheap nylon looking things) putting up balloons advertising loans. Anyway, I asked to open an ISA and they sent me through to another girl who looked slightly older. She was all set to open my ISA until I explained I wanted a fixed rate ISA. "Oh no," she says, "I can't open that- you need to see a financial advisor for that".

She managed to make a same day appointment for me with the "financial advisor" at the other branch in town. So I went there and saw him. "I don't know why they sent you here, " he said, "they can just open it up on the computer screen." Although bizarrely, he then told me he couldn't open it and noone was available. Still, he photocopied all my ID documents, and took details of my old ISA that I want transferring.

If all goes well, the account will be opened for me on Monday and they'll send out their forms in the post.

Going to banks now is like buying a computer at Dixon's - you know more about the products they are selling than they do. I finished the conversation by asking the 'financial advisor' if he needed my national insurance number!

johnmoney05

Well, I was asked lots of questions on the phone, including the details of my old ISA, Bank name, address, account number, amount, then I was sent a blank transfer form.
I really don't understand why they don't just send us the blank application form and blank transfer form in the post. Let us to fill in and return. Save my half an hour on the phone with them. Also I am sure they have better things to do?

Reestit_Mutton

johnmoney05 wrote: »

I really don't understand why they don't just send us the blank application form and blank transfer form in the post. Let us to fill in and return. Save my half an hour on the phone with them. Also I am sure they have better things to do?

If you actually saw the application form you'd understand why they do it for you...it makes no mention of the type of ISA you are applying for. Had you filled it in and sent it off (or just handed it in over the counter) you would probably have ended up with their variable rate ISA and been none the wiser until the annual interest payment had been made, by which time it would probably have been too late to request a switch to the fixed rate product.

I actually did get an application form because I needed to fill it in for my mum and get her to sign it. It was only when I had completed the form that I realised that nowhere had it asked me which type of ISA I was applying for so I had to request a meeting with the branch manager to sort out this anomaly before completing the application process.

RM

johnmoney05

Reestit_Mutton wrote: »

If you actually saw the application form you'd understand why they do it for you...it makes no mention of the type of ISA you are applying for. Had you filled it in and sent it off (or just handed it in over the counter) you would probably have ended up with their variable rate ISA and been none the wiser until the annual interest payment had been made, by which time it would probably have been too late to request a switch to the fixed rate product.

I actually did get an application form because I needed to fill it in for my mum and get her to sign it. It was only when I had completed the form that I realised that nowhere had it asked me which type of ISA I was applying for so I had to request a meeting with the branch manager to sort out this anomaly before completing the application process.

RM

Well, it could be easier if they provided the right form then? No? By the way, just had a look at the form they sent me, it clearly said "Fixed Rate Mini Cash ISA" on the top. So you better make another appointment with the bank manager to see if you get the right ISA.

It is your choice if you want to see the bank manager, fair enough. But we don't have a choice, do we?

Reestit_Mutton

johnmoney05 wrote: »

Well, it could be easier if they provided the right form then? No? By the way, just had a look at the form they sent me, it clearly said "Fixed Rate Mini Cash ISA" on the top. So you better make another appointment with the bank manager to see if you get the right ISA.

It is your choice if you want to see the bank manager, fair enough. But we don't have a choice, do we?

The transfer form requires you to provide the account number to transfer the money to so there's no confusion there - it's their application form that is lacking in this information. I suspect that they may have only ever offered a single variable rate ISA product up until now so their forms haven't needed to allow for ISA product selection - let's hope they sort their forms out soon though.

Anyway, once my mum's fixed rate ISA was set up with this year's £3K the bank manager was able to provide me with the sort code and account number of the new account to complete the transfer form with.

A quick check via her online account login shows the new ISA with £3000 alongside her current and internet saver accounts.

RM

roddydogs

According to Martin, fixed rate isas must give the customer withdrawal rights-yes with penalty, so how do they get away with "No withdrawals"?

surfcat

roddydogs wrote: »

According to Martin, fixed rate isas must give the customer withdrawal rights-yes with penalty, so how do they get away with "No withdrawals"?

The 'financial advisor' I spoke to the other day at Lloyds said the penalty was a reduction in IR to the standard rate of 5.5%.

I'll confirm when I see the t and c later today...

Rogerb_2

roddydogs wrote: »

According to Martin, fixed rate isas must give the customer withdrawal rights-yes with penalty, so how do they get away with "No withdrawals"?

You lose the last three months interest if you withdraw. The rate of interest for under £3000 investment, should you drop below it in withdrawing, is 0 for the duration of the period at that level of investment.

That aside it looks a good deal.

surfcat

Rogerb wrote: »

You lose the last three months interest if you withdraw. The rate of interest for under £3000 investment, should you drop below it in withdrawing, is 0 for the duration of the period at that level of investment.

That aside it looks a good deal.

Agreed.

The t*ts and c*nts (5.4) say, "...you will lose 90 days interest if you make any withdrawals or transfers out of the FRISA account during the 12 months fixed rate period".

Liz_the_Whizz

As I am not currently a Lloyds TSB customer, I rang up to get a timed appointment with my local branch to open a FRISA next week.

While on the phone, I asked about transferring in my TOISA - great consternation from my "introducer" and several minutes of incidental music later, I was told "no" but it was also suggested I should check when I meet with the branch rep.

Can't see anything on the website, so has anyone found out the answer to this one?