LloydsTSB Fixed rate Isa 6.5%

roddydogs

Should be fun when we all try to get our money out when the 6.5% ends!

boobbby

I made a large partial transfer to lloyds fixed ISa last year and then paid this years allowance into the original provider so it now has about £10000 in the cash ISA. I now find I dont need to use this money and was considering transfering another £6000 into the Lloyds ISA and leaving £4000 for emergencies. Would this be allowed or would I only be able to transfer the £3600?

Mr._H_2

boobbby wrote: »

I made a large partial transfer to lloyds fixed ISa last year and then paid this years allowance into the original provider so it now has about £10000 in the cash ISA. I now find I dont need to use this money and was considering transfering another £6000 into the Lloyds ISA and leaving £4000 for emergencies. Would this be allowed or would I only be able to transfer the £3600?

Why did you only transfer some of the money into the Lloyds ISA? Is the Lloyds ISA paying you 6.5%? If you really did open it last year, I suspect not. Perhaps you meant last tax year?

If you want to transfer from your other ISA this tax year, I think you'll have to transfer the whole lot and close the other ISA.

Mr._H_2

sloughflint wrote: »

S/he can transfer all or partial amounts from the other ISA but is it worth it?
I'm not anticipating a very attractive rate at the end of the fixed term.

(s)he said that (s)he's paid this year's allowance into the other ISA, and I believe that that makes things a bit more complicated in terms of any further transfers (s)he makes this year. I'm pretty sure it means that the whole lot has to be moved out of the older ISA, otherwise it could count as subscribing to two ISAs in one year which isn't allowed.

Mr._H_2

sloughflint wrote: »

A transfer is just that. Would not count as subscription in two places.

The point is that the ISA had been subcribed to this tax year.

Let's consider a few different scenarios:

You have some old ISAs from previous tax years, call these "A" and "B"
You open new ISAs "C" and "D".

You can transfer "A" and "B" into "C" and pay the new allowance into "D" no problem. But, you are not allowed to split the allowance across multiple ISAs.

So, let's say "A" has £1000 in it, "B" has £6400 in it, and obviously when "C" and "D" are opened they'll both have £0 in them.

You transfer "A" into "C" - this is O.K.
You pay £3600 "new money" into "B" - this is O.K.

Now we've £0 in "A", £1000 in "C", £10000 in "B" and £0 in "D".

If you now transfer anything more than £6400 from "B" into "D", you are unarguably putting "new money" into "D", thereby breaking the "only subscribe to one ISA per tax year" rule, and you have to transfer the whole lot.

If you transfer less than £6400, I do believe the revenue still consider a proportion of the money you are moving to be "new money". i.e., when "B" has £10000 in it, 64% of it is "old money" from previous tax years, and 36% of it is "new money" from this tax year. I'm pretty sure that any amount you transfer is now considered to have those proportions of "new" and "old" money.

ffacoffipawb

6022tivo wrote: »

Lloyds TSB Isa Transfer Office......

How do you add a picture into a post?

Mr._H_2

ffacoffipawb wrote: »

How do you add a picture into a post?

You need somewhere to "host" the image, then you use the image tags.

The clues are all there in the post you quoted. When you pressed the quote button, you should have seen text a bit like this in your reply box:

[ QUOTE=6022tivo;12871733]Lloyds TSB Isa Transfer Office......

[ IMG]http://www.effie.org/images/pages/20070407/career_builder_hero.jpg[ /IMG][ /QUOTE]

(I've put an extra spaces in the tags (the things with square brackets) to stop them being treated as tags.)

tivo found (or uploaded) the image at http://www.effie.org/images/pages/20070407/career_builder_hero.jpg, then wrapped that URL with

boobbby

Lets keep things simple. I (HE) made a large partial transfered in March 2008 from my previous provider into a 6.5% fixed Lloydstsb ISA. I had already paid into the previous provider £3000 but who cares whether this was part of the partial transfer or not. I knew I could not make further payments into a cash ISA until the following tax year. As I understand it the lloydstsb fixed ISA can for 12 months from the date it was opened have the following tax years £3600 paid in directly or as a transfer PLUS any other ISA transfers from previous years. I do realise that I will only get the 6.5% until March 2009 (anniversary date) then the fixed ISA will revert to a normal ISA at a lower rate!
I agree with Sloughflint it might not even be worth the bother as I get 5% with my old provider but thought it might add to the debate !!

I found I could add a picture by just using the right click copy and then paste method

Mr._H_2

boobbby wrote: »

I agree with Sloughflint it might not even be worth the bother as I get 5% with my old provider but thought it might add to the debate !!

£10000 at 5% will earn £208.33 in 5 months (allowing one month for the transfer to Lloyds), and at 6.5% it'll earn £270.83. It's up to you whether the time it takes you to fill in a form and post it is worth £62.50.

boobbby

Mr._H wrote: »

£10000 at 5% will earn £208.33 in 5 months (allowing one month for the transfer to Lloyds), and at 6.5% it'll earn £270.83. It's up to you whether the time it takes you to fill in a form and post it is worth £62.50.

I am convinced !! And as a bonus I can draw on it at anytime without the large loss of interest incurred by a fixed ISA and which is why I left it there in the first place. It stays where it is !! (unless I get that new car!!)