LloydsTSB Fixed rate Isa 6.5%

MiserlyMartin

My next dilemma is what do do with my Barclays ISA that has its introductory rate running out in April. Its also the new tax year so I need a place to stash that. The big question is do I transfer it and the new years subscription to Lloyds fixed rate ISA 6.5%? If I do this the ISA will go above the safe 35K.

As Lloyds is rated one of less risky banks, I'm sure that I'll have no problems over 35K but when its transfer time again in Feb 2009 the next great deal might be from one of the not so safe banks. Its hard to split the ISA up again next year as lots of providers don't allow partial transfers including this one from Lloyds.

So its a case of taking a lower variable rate or piling it all in Lloyds and getting problems later from having one big ISA. I can't decide what to do. Anybody suggest anything?

bristolleedsfan

MiserlyMartin wrote: »

My next dilemma is what do do with my Barclays ISA that has its introductory rate running out in April. Its also the new tax year so I need a place to stash that. The big question is do I transfer it and the new years subscription to Lloyds fixed rate ISA 6.5%? If I do this the ISA will go above the safe 35K.

As Lloyds is rated one of less risky banks, I'm sure that I'll have no problems over 35K but when its transfer time again in Feb 2009 the next great deal might be from one of the not so safe banks. Its hard to split the ISA up again next year as lots of providers don't allow partial transfers including this one from Lloyds.

So its a case of taking a lower variable rate or piling it all in Lloyds and getting problems later from having one big ISA. I can't decide what to do. Anybody suggest anything?

I was wondering when people are going to start transferring their Barclays Taxbeater ISA "out". :cheesy:

Struck me that if Barclays were to get beseiged with transfer applications they would miss the maximum 30 day time limit to transfer out and end up paying people compensation. :beer: :j :beer:

If i was u, as things are atm, i would stick it all in the 6.5% ISA and worry about next year when it arrives. ( plenty of providers take part ISA transfers, i split my 2006/07 ISA three ways. )

shaz77_2

Is it necessary to visit a branch? The reason why I ask is because there are none close to me.

My final question is does a normal savings account with Lloyds TSB need to be set-up before an ISA account can be taken out?

MiserlyMartin

Yes you do have to visit a branch to open one if you aren't a banking customer.
No you don't have to have any other accounts with them to open one.

shaz77_2

Thanks for that however visiting a branch may be a problem as there are none remotely close to me, would there be any other way around this problem?

sleepless_saver

Reestit_Mutton wrote: »

This question I can answer...At the end of the "year" your ISA simply reverts to their standard variable rate one (currently paying 5.5%) and this ISA attracts no interest penalties or transfer fees upon transferring out.

HtH
RM

The 5.5% standard variable rate to which the fixed rate ISA reverts is only if you have more than £21k. If you have less than £3k, it is only 4.25%, £3k-£9k 5.1% and so on.

Dagobert

Although Lloyds TSB's important information states that this year's ISA must be introduced, I just managed to open the account over the phone only introducing previous years' ISAs.

Fella

bristolleedsfan wrote: »

If i was u, as things are atm, i would stick it all in the 6.5% ISA and worry about next year when it arrives. ( plenty of providers take part ISA transfers, i split my 2006/07 ISA three ways. )

That answers an unasked question of mine ("can you transfer an ISA piecemeal to more than one provider?"). My ISA is getting very close to the £35K limit (my current ISA plus £3.6K from 2008-2009 would in fact take it over £33K which is the effective limit if one includes interest).

If you can split an ISA when transferring it I wouldn't have qualms about putting next year's allowance into LTSB.

sleepless_saver

The terms of the Lloyds offer stop you splitting it, you have to put in the whole lot.

"You cannot open a Fixed Rate Cash ISA where you have already opened or contributed to a Cash ISA (held either with us or another provider) in the same tax year (unless you transfer the whole account into this one)...."

Temrael

I can't see anything about limitations on access on the Lloyds TSB website? Is it instant access with no penalties?

Also how is the interest calculated, I see it is tiered but I would need to transfer in about 5k from previous years, 3k from this years allowance and then top it up with next years?

Will I still achieve the 6.5% for the time the account is over £9k?

Or is it only the opening balance that is used to calculate the interest earned?