LloydsTSB Fixed rate Isa 6.5%

dkmax_2

h5djr wrote: »

I opened a LTSB Fixed rate ISA at the end of last tax year and my balance of over £27,000 was transfered into the account on 12 March 2008.
If I now add a further £3600 to that account, does anyone know what rate I will et 6.5% fixed or 5%.

You opened a fixed rate (or rather fixed tier) account so you will get the same rate on all permitted deposits, i.e. 6.5%. The FRISA explicitly allows multiple deposits during the term (subject to normal ISA limits).

The 5% account is an entirely different entity.

dkmax_2

derrick wrote: »

As there is no deposited money in the account, how can it be open?

I've explained this before.An account can be open for business without any money in it - does your current account close if it has no balance? No, of course not. You can open multiple ISA accounts in any tax year, but only upon deposit does that ISA start - this is what the T&Cs are saying, very, very badly. You will note that all LTSB ISAs have the same description which means that it cannot refer to the fixed-term clock, but to the notion of when an ISA starts.

The fixed-term starts when the account was opened, i.e. when the application was accepted. There is no documentary evidence to the contrary and this is consistent with normal banking practice.

derrick

dkmax wrote: »

There is no documentary evidence to the contrary and this is consistent with normal banking practice.

I disagree, their own T&Cs on the forms they supplied state; - 1. account opening
2. Your FRISA will start from the date of your first deposit which must be accompanied by a valid application form.

From the date of the first DEPOSIT!! there is a nil balance i.e. NO DEPOSIT!!
Therefore according to THEIR T&Cs it isn't open!!

Anything they SAY to the contrary will need to be backed up in writing.

h5djr

dkmax wrote: »

You opened a fixed rate (or rather fixed tier) account so you will get the same rate on all permitted deposits, i.e. 6.5%. The FRISA explicitly allows multiple deposits during the term (subject to normal ISA limits).

The 5% account is an entirely different entity.

I have just called in to my branch and they have confirmed that if I now pay in this years allowance of £3600 into my existing Fixed Rate account I will get the full 6.5% on all the money.

notis7

I don't understand h5djr - fixed ISA is paying 5% is it not?

KTF

If the ISA was opened when the rate was 6.5% you will get 6.5% when the balance is over 9k.

If the ISA was opened when the rate was 5% you will get 5% when the balance is over 9k.

pmchapman

Hi all, I'm beginning to think the Lloyds just really isn't worth the bother and the extra few quid i'll get will be far outweighed by the money spent on repeated phone calls to them.

The latest saga with my FRISA...

I tried to transfer my allowance from this year from my halifax current account to the ISA. A week and 2 days after I sent the money and the it had still not arrived in my ISA, so I was getting a bit worried, but I checked my current account again and it had been credited with £3600. I went into my local Lloyds branch where I opened the account and they were pretty much useless. The guy spent 30 minutes on the phone trying to get through to someone and when he did all they said was that it should of gone through and that I should try it again. But obviously i'm not too pleased as my money has sat in limbo for over a week and I don't want the same to happen again.

I then called halifax to see if it was any problem at there end but they told me the money was sent to the right account but was returned to them for unknown reasons. So I called Lloyds and spent 20 minutes on the phone to a woman who had no clue what was going on with it but said that it was Halifax's responsibility to tell me why Lloyds had rejected the payment! It's an absolute joke and I don't really know what to do now.

Has anyone experienced similar? I reckon it's Lloyds way of giving me my 6.5% account but as i'm being prevented from adding any money i'm stranded on the 5.25%.

h5djr

KTF wrote: »

If the ISA was opened when the rate was 6.5% you will get 6.5% when the balance is over 9k.

If the ISA was opened when the rate was 5% you will get 5% when the balance is over 9k.

Exactly as KTF says,

KTF

pmchapman wrote: »

Has anyone experienced similar? I reckon it's Lloyds way of giving me my 6.5% account but as i'm being prevented from adding any money i'm stranded on the 5.25%.

I think you can only transfer money directly into the ISA via a Lloyds current account. Its easy enough to pay it in over the counter at a branch though.

marshall2k

I have transferred into my ISA by BACS from a current account with another bank with no problems