LloydsTSB Fixed rate Isa 6.5%

Joe65_2

You could Try Tomorrow - Otherwise Barclays is still offering 6.5% (variable) for Instant Access

waddy80

Suzey wrote: »

thanks - so is Lloyds withdrawing this product for new customers after COB tomorrow?

Suze

It will be withdrawn tomorrow. Any applications after tomorrow wil get the 5% fixed rate deal which starts on monday.

hereford_2

I'd seriously consider opening an isa elsewhere.

I spoke to lloyds isa helpline this morning, and a manager there confirmed that the fixed rate period starts from the day the account opened. I pointed out the terms and conditions I was sent, but he said unfortunately misleading information had been issued but that it was definitely from the day the account opened.

Therefore as I see it, the 6.5% for a year is impossible.

You can only get 6.5% if you have in excess of £9000 in the account, and you can't get that unless you transfer previous years. It takes 30 days to transfer, therefore thats 1 month gone. Leaving 11. However, if you withdraw early at the end, you'll loose 90 days interest, so you wouldn't want to raise a transfer until the fixed rate period is over, in case you mistime it.

At the end of the fixed rate period, the interest rate changes to a variable rate, currently 5% for 9000-15000.

So thats 11 months at 6.5%, 1 month at 5%(probably a lot less by next year).

Seems rather a con to me.

I wish I'd left mine with Barclays.

gelato_cat

Good thing I applied online on Thursday night then

Suze

waddy80 wrote: »

It will be withdrawn tomorrow. Any applications after tomorrow wil get the 5% fixed rate deal which starts on monday.

Ian_W

hereford wrote:

I spoke to lloyds isa helpline this morning, and a manager there confirmed that the fixed rate period starts from the day the account opened. I pointed out the terms and conditions I was sent, but he said unfortunately misleading information had been issued but that it was definitely from the day the account opened.

But an ISA isn't opened until it's funded according to HMRC - see HMRC ISA Managers Guidance Notes 2008 - specifically:
5.3 An ISA begins from the later of
• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made

So the fact it's showing with a zero balance on internet banking doesn't mean it's opened as an ISA - not until a subscription gets there. If you fund it with this years allowance then transfer, it will be 11 months or thereabouts at the higher rate. If you fund it with a transfer in they're in breach not only of the T&C's you mention but also HMRC guidance if they say it's opened before they get the dosh.

I suggest you write a formal complaint letter to LTSB about the advice you were given being in breach of their own and HMRCs "rules" if the latter applies.

Also LTSB credit interest from the date of the previous managers closure cheque until the date it is shown as credited to their ISA [many providers don't]. I have this in a standard letter format both for myself and Mrs W.

The issue of a lower rate at the end of the fix comes with the territory whoever you decide to go with on a fixed rate as far as I can see.

chesky369

I bet that half the people who rush to open one of these ISAs will be very surprised when they don't actually get the 6.5% because they've only put this years 3,600 in which will only get them 5%.

gelato_cat

Thanks for this. I'm wondering what will happen to those who don't get their money in before the rumoured rate drop then, as the ISA won't be "open" according to those guidelines...

Suze

Ian_W wrote: »

But an ISA isn't opened until it's funded according to HMRC - see HMRC ISA Managers Guidance Notes 2008 - specifically:
5.3 An ISA begins from the later of
• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made

So the fact it's showing with a zero balance on internet banking doesn't mean it's opened as an ISA - not until a subscription gets there. If you fund it with this years allowance then transfer, it will be 11 months or thereabouts at the higher rate. If you fund it with a transfer in they're in breach not only of the T&C's you mention but also HMRC guidance if they say it's opened before they get the dosh.

I suggest you write a formal complaint letter to LTSB about the advice you were given being in breach of their own and HMRCs "rules" if the latter applies.

Also LTSB credit interest from the date of the previous managers closure cheque until the date it is shown as credited to their ISA [many providers don't]. I have this in a standard letter format both for myself and Mrs W.

The issue of a lower rate at the end of the fix comes with the territory whoever you decide to go with on a fixed rate as far as I can see.

Joe65_2

Ian_W wrote: »

But an ISA isn't opened until it's funded according to HMRC - see HMRC ISA Managers Guidance Notes 2008 - specifically:
5.3 An ISA begins from the later of
• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made

So the fact it's showing with a zero balance on internet banking doesn't mean it's opened as an ISA - not until a subscription gets there. If you fund it with this years allowance then transfer, it will be 11 months or thereabouts at the higher rate. If you fund it with a transfer in they're in breach not only of the T&C's you mention but also HMRC guidance if they say it's opened before they get the dosh.

I suggest you write a formal complaint letter to LTSB about the advice you were given being in breach of their own and HMRCs "rules" if the latter applies.

From an HMRC point-of-view The ISA(s) you Transfer in started/began/opened when you funded them in previous years. HMRC probably cares little about when Lloyds actually picks up the dosh or starts paying interest.

bob2007

The rate drop is not a rumour - confirmed tonight by Lloyds TSB staff.

You should get your higher rate. It's more a deadline for APPLICATIONS - not for getting the money transferred in by today.

poppy10_2

Can you transfer the £9000 from different ISA accounts?