LloydsTSB Fixed rate Isa 6.5%

6022tivo

People saying they are getting only 11 months at 6.5% are correct, the other month is at 5%, but they are wrong by saying 6.5% is impossible over 12 months. This is because this offer is also for exsisting customers who may have over 9k already in a lloyds isa, and lloyds have a similar offer every year to keep aware people who apply to get a higher than standard rate.

I don't know what the special rate was last year for new and exsisting, but they have been suprised by the take up this year and are for the first time in many years oversubscribed, so they have stopped the offering.

So for people having a moan at it going back to the standard rate in 12 months, look out for next years offer for a higher (but tied in) rate for 12 months. Lloyds tell me this is the standard practice they have been doing for years.

Sooler

Suzey wrote: »

Application AND transfer forms? Are you sure?

Suze

I think so, that's as I understood it.

If you open the Cash ISA with £3000 you'll qualify for 5%.

From Monday there is no 6.5% on offer, the best rate will be 5%. So any more money you pay in can only attract the 5% rate.

gelato_cat

OK, so it's not fact - just how you understand it.

Personally I think the clue's in the name: Fixed Rate ISA.

Have to wait and see I spose...

Suze

Sooler wrote: »

I think so, that's as I understood it.

If you open the Cash ISA with £3000 you'll qualify for 5%.

From Monday there is no 6.5% on offer, the best rate will be 5%. So any more money you pay in can only attract the 5% rate.

Sooler

Joe65 wrote: »

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'.

Yes they do and count as the £3000 minimum deposit.

So if your transfers equal or exceed £9000 that's enough to open the account. You can then add your £3600 for this year at any time, either when you open the account or as you can during the year.

Sooler

Suzey wrote: »

Personally I think the clue's in the name: Fixed Rate ISA.

ah yes, so it will be fixed at the rate that applies at the opening of the account. So you'll need to open with £9000 before Monday to get 6.5% fixed. That will require transfer forms to be completed.

Sooler

skitskut wrote: »

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?

I don't think so - get the transfer form completed today [Saturday] and get them to add it to your opening deposit, last chance, else you'll be fixed at 5%.

gelato_cat

... is your understanding. Unless you can quote me T&Cs which state this, I prefer to wait and see what happens. You seem to have missed the fact that the rates are tiered.

Suze

Sooler wrote: »

ah yes, so it will be fixed at the rate that applies at the opening of the account. So you'll need to open with £9000 before Monday to get 6.5% fixed. That will require transfer forms to be completed.

Sooler

Suzey wrote: »

You seem to have missed the fact that the rates are tiered.

Suze

I see but I don't think the rates are fixed for money you haven't deposited.

Of course I may be wrong.

Rob_D

Sooler wrote: »

I see but I don't think the rates are fixed for money you haven't deposited.

Of course I may be wrong.

The terms and conditions are completely devoid of information on this topic.

I applied online on Wednesday evening (GMT). As part of the online application process Lloyds TSB ask you to tick a check box saying that you have looked at the interest rates, and to either save or print a copy of the interest rates at that time. I did so and have a saved copy of their web pages saying the interest rate as of 28/1 was 6.5% above 9,000. They then tell you that your application is accepted and the ISA appears in the online banking system.

Lloyds requesting this action of me directly implies that I get the rate that was in force at the time the application was processed, irrespective of the date of first credit. If it doesn't, then the application process is very misleading.

I'm working overseas for a couple of months, but I'm still resident in the UK for tax purposes. I'm eligible to open an ISA just like anyone else. I cannot visit a branch. My transfer form is in the post right now!

Rob

exel1966

Sooler wrote: »

I see but I don't think the rates are fixed for money you haven't deposited.

Of course I may be wrong.

The t&C's are quite clear in that you'll get a tiered rate. Only when you have £9000+ physically sitting in the account will you get the 6.50%. You definately WILL NOT be getting it if some or all of that 9K is in the process of being transferred.
I realise that Lloyds have being quite vague on their website about many issues including a full set of T&C's, but when requesting to open the account you'll get the full T&C's. It appears that even those with the full T&C's are having trouble understanding the rates and the tiering system which I personally cannot understand .