LloydsTSB Fixed rate Isa 6.5%

Sooler

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

HMRC rules are irrespective of qualifying for the 6.5% rate.
Lloyds have stipulated their own conditions for qualifying certain interest rates based on their own process for opening ISAs. These do not over rule HMRC in any way.

Effectively you need to complete the application form and transfer forms before Monday to get the 6.5% - , the actual £9000 of money and transfers can get to the account whenever after that.

Whether you're getting 6.5% or 5% HRMC will treat the applications exactly the same. Lloyds have just set a cut off date for being able to get the 6.5% rate.

Sooler

poppy10 wrote: »

Can you transfer the £9000 from different ISA accounts?

yes, you can indeed, as many diffent ones as you like. You'll need to complete a transfer form for each one.

Joe65_2

hereford wrote: »

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.

You'll not be saying that when BArclays follows the BoE rate.

gelato_cat

Application AND transfer forms? Are you sure?

Suze

Sooler wrote: »

HMRC rules are irrespective of qualifying for the 6.5% rate.
Lloyds have stipulated their own conditions for qualifying certain interest rates based on their own process for opening ISAs. These do not over rule HMRC in any way.

Effectively you need to complete the application form and transfer forms before Monday to get the 6.5% - , the actual £9000 of money and transfers can get to the account whenever after that.

Whether you're getting 6.5% or 5% HRMC will treat the applications exactly the same. Lloyds have just set a cut off date for being able to get the 6.5% rate.

bob2007

On phone tonight, the woman said that if wanted the 6.5% would have to do the transfer form at the time of application tomorrow; otherwise if did it in future would not count as the higher rate.

michaels

bob2007 wrote: »

On phone tonight, the woman said that if wanted the 6.5% would have to do the transfer form at the time of application tomorrow; otherwise if did it in future would not count as the higher rate.

I was told same thing - also no appointments tomorrow so I had to get in to a branch by 4 this PM to open accounts for self and Mrs. By the time I had waited for 30 mins beyond scheduled appointment time and then forms filled in it took 75 mins before out of branch. For this year and last years money for myself I just recently set up A&L isa online, took about 2 mins in my own time. What did it cost LTSB to employ someone to do all this? I am not going to buy any other products unless they are market leading so they are making a loss on the isa rate and more loss from advisers time...

Joe65_2

bob2007 wrote: »

On phone tonight, the woman said that if wanted the 6.5% would have to do the transfer form at the time of application tomorrow; otherwise if did it in future would not count as the higher rate.

As you are required to 'fund' the account from the start & to get the higher rate the 'funding' has to exceed the £ 9K. I believe (in the case of Transfers) doing these forms counts as this 'funding'.
Just ensure the Transfers you authorise tomorrow added to anything you Pay In tomorrow adds up to at least the 9K.

Joe65_2

michaels wrote: »

I was told same thing - also no appointments tomorrow so I had to get in to a branch by 4 this PM to open accounts for self and Mrs. By the time I had waited for 30 mins beyond scheduled appointment time and then forms filled in it took 75 mins before out of branch. For this year and last years money for myself I just recently set up A&L isa online, took about 2 mins in my own time. What did it cost LTSB to employ someone to do all this? I am not going to buy any other products unless they are market leading so they are making a loss on the isa rate and more loss from advisers time...

' hope you Transferred it then, as :-

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),

from:-
http://www.lloydstsb.com/legal/savings_legal/fixed_rate_cash_isa_savings_page.asp

gelato_cat

Well, there's no such guidance (re "you have to do the transfer forms at once" etc) for those of us who opened the accounts online. I'll post my transfer forms to them and see what happens.

Suze

skitskut

I've 'opened' a FRISA today (11th) by authorising a transfer in of just over 3k. Now when I transfer in another ISA next wk to exceed the 9k do people think I'll get 6.5% on the whole lot when it all eventually gets to LTSB?