LloydsTSB Fixed rate Isa 6.5%

tawse57

Could you end up stuck in Lloyds at the end of the 12 months and then discover that Lloyds reduce the rates dramatically? I mean, what if in 12 months no other bank is offering a transfer-in ISA and/or not for over 9K? You would be stuffed then surely?

bristolleedsfan

tawse57 wrote: »

Could you end up stuck in Lloyds at the end of the 12 months and then discover that Lloyds reduce the rates dramatically? I mean, what if in 12 months no other bank is offering a transfer-in ISA and/or not for over 9K? You would be stuffed then surely?

There is always a risk that the highest paying ISAs in 12 months time wont allow transfers in.

wheresmydoshat

i currently have a badly performing maxi isa with sw through lloyds and i bank with them also.

this looks like a good get out of a bad situation, transfer the lot to this for a year and make back most of my losses.

any reasons people would think this is not a good idea ?

gelato_cat

I had a thought when I woke up this morning (unusual for me to be so alert first thing)!

I have a few years' worth of ISAs with YBS and one each with Egg and NS&I. I want to transfer the whole lot to Lloyds.

I'm not going to be able to initiate the transfer stuff until the beginning of April. So as to make the most of my tax-free allowance, would it be OK to put my £3600 for 2008-9 into my existing Egg ISA on April 6th while I'm waiting for the lot to get transferred to Lloyds?

If not, it means I need to wait yonks for everything to go through and then transfer it to the new Lloyds account.

Any ideas?

Suze

Ian_W

wheresmydoshat wrote: »

i currently have a badly performing maxi isa with sw through lloyds and i bank with them also.
this looks like a good get out of a bad situation, transfer the lot to this for a year and make back most of my losses.
any reasons people would think this is not a good idea ?

Yes. You can't transfer a maxi ISA into a mini Cash ISA, even when the mini/maxi distinction is removed on 6/4/08 you will only be able to move cash ISAs to S&S ISAs - not the other way about.
You could transfer the ISA to a fund supermarket where you would have a much wider choice of investments funds. Do remember, although the LTSB SW funds you're in are probably going to be pretty poor with high charges, the markets are performing poorly at the mo so not many funds are doing too great. That's why you need to consider them as a medium to long term investment.

Suzey wrote:

I'm not going to be able to initiate the transfer stuff until the beginning of April. So as to make the most of my tax-free allowance, would it be OK to put my £3600 for 2008-9 into my existing Egg ISA on April 6th while I'm waiting for the lot to get transferred to Lloyds?

Well it would, but why not put in straight into the LTSB ISA? On 6/4/08 [well probably 7th as 6th is a Sunday] you'll be able able to put it in there if you've opened the account - even if your transfers from Egg and YBS haven't arrived.

wheresmydoshat

thanks for putting me right.

i may just transfer my mini isa and the add next years as well then.

leave my maxi to recover a bit and find a decent saver account for it once is has.

gelato_cat

I didn't realise you could do that - at what stage do they open the account? Is it straightaway over the phone, or after you've signed and sent back some forms?

Suze

Ian_W wrote: »

Well it would, but why not put in straight into the LTSB ISA? On 6/4/08 [well probably 7th as 6th is a Sunday] you'll be able able to put it in there if you've opened the account - even if your transfers from Egg and YBS haven't arrived.

Ian_W

Suzey wrote: »

I didn't realise you could do that - at what stage do they open the account? Is it straightaway over the phone, or after you've signed and sent back some forms?
Suze

If you do it over the phone, they send you a copy but you don't have to sign and send back. IIRC mine was showing up online with a zero balance 2 or 3 days after I called. As my 2007 allowance was fully used I had to wait for the transfer in to arrive - but you could deposit your 08 allowance in on or after the 6th whether your previous years transfers have arrived or not.

boobbby

They open the account immediately but with a zero balance. You can now transfer any other ISA's you have with other providers but not add any money until after April 5th if you have already paid into another ISA. You will need over £9000 in the account to get the top rate of 6.5%
Bob

Richchad

Ian_W wrote: »

If you do it over the phone, they send you a copy but you don't have to sign and send back. IIRC mine was showing up online with a zero balance 2 or 3 days after I called. As my 2007 allowance was fully used I had to wait for the transfer in to arrive - but you could deposit your 08 allowance in on or after the 6th whether your previous years transfers have arrived or not.

Mine was opened immediately after I applied at the branch showing zero online of course until my transfers have completed, which raises the question when does the year fixed rate start from the opening date or when the transferred money arrives in the account?