LloydsTSB Fixed rate Isa 6.5%

ukdutypaid

I'm going to assume that because I'd applied for the account prior to the rate change (Thursday and appearing in Internet banking, but unfunded at this point), but that they only received the transfer forms on yesterday (Monday), that they'll honour the 6.5% (payable as soon as the funds arrive).

It would be pretty dishonourable of them................ Ah well, we'll see, they may be famous last words on my behalf...

Why couldn't they simply have put a statement up on the web... There's not even a trace of the 6.5% in the closed accounts sections...

We did all see the 6.5%, didn't we, I mean it did exist didn't it.. haha...
It ain't worth getting all frustrated about it though. Hell it won't make you rich or allow you to give up work... So don't stress it.. I know I did last year with the Barclays one, it ain't worth it....

boobbby

ukdutypaid wrote: »

I'm going to assume that because I'd applied for the account prior to the rate change (Thursday and appearing in Internet banking, but unfunded at this point), but that they only received the transfer forms on yesterday (Monday), that they'll honour the 6.5% (payable as soon as the funds arrive).

It would be pretty dishonourable of them................ Ah well, we'll see, they may be famous last words on my behalf...

Why couldn't they simply have put a statement up on the web... There's not even a trace of the 6.5% in the closed accounts sections...

We did all see the 6.5%, didn't we, I mean it did exist didn't it.. haha...
It ain't worth getting all frustrated about it though. Hell it won't make you rich or allow you to give up work... So don't stress it.. I know I did last year with the Barclays one, it ain't worth it....

The ISA you opened was a FRISA so you get the 6.5% (It remains a fixed rate for 12 months)

Afrer the rate change the New FRISA pays 5% so most people would be crazy to bother with this ISA

The Lloyds Cash ISA also pays 5% on £9000 but has easy access (This is the ISA that Lloyds will change the FRISA's too after 12 months)

Sooler

mr_fishbulb wrote: »

That's the thing I'm worried about.

I opened the account last Thursday with a transfer in from an existing ISA of over £9000. I was told that this will fix the ISA at 6.5%

Also the I could add £3600 this tax year and get 6.5% on it up until the 12 month fixed period expires.

Although nothing in writing shows that

I was informed of the same.

Transfers also qualified as the £3000 required funding for opening the account, so you could open the account and qualify for the 6.5% by completing the application and transfer forms to transfer £9000. You’d then be able to pay in £3600 during this tax year. The transferring money can take as long as it takes to transfer.

If the rate is fixed it’s fixed – jumping from 0% to 6.5% isn’t a fixed rate

Sooler

boobbby wrote: »

Afrer the rate change the New FRISA pays 5% so most people would be crazy to bother with this ISA

Lloyds have effectively priced themselves out of the ISA market – perhaps they’re not interested in providing ISA accounts during the rest of the year.

Perhaps their strategy by offering the 6.5% for a limited time was to attract customers able to transfer large amounts – and of course this is the time of year when most people will be looking at transferring. It also withdraws a lot of cash from their competitors – I bet the Halifax took a big hit.

exel1966

sloughflint wrote: »

This is an interesting post. Now I can understand why bank staff are stating that the 12 months starts from application and would tally with the T&C if the signature/date counts as a deposit.

How confident are you with this statement? Where did you get the info from?

I'm 110% confident in the statement. I wouldn't have put it there otherwise. It has come from a senior exceutive based within the processing centre in Andover. I can't say any more than that..............

except I really do believe that many people are working themselves into a frenzy like state over this and getting quite hysterical about it. The same thing happened last year with the Barclays 6.5% ISA, the Barclays £100 offer and many more of the TOP offers before that. I appreciate that our own money (and I have deposited a significant amount) is very close to our hearts and that Lloyds haven't exactly helped in dispelling the myths and inacuracies that are appearing here, but some are interpreting for themselves what is fundamentally crystal clear within the T&C's.

Just like all GOOD offers of this nature it was a 'loss-leader' designed to pull the public in and then get oversubscribed, hence being pulled early, a very common occurrence in the banking world. There's nothing sinister in it, yet from reading here you would think Lloyds are pulling out all the stops to pull the wool over our eyes and defraud us all. Well that isn't going to happen, Lloyds are a reputable organisation.

sloughflint

exel1966 wrote: »

I'm 110% confident in the statement. I wouldn't have put it there otherwise. It has come from a senior exceutive based within the processing centre in Andover. I can't say any more than that..............

Fantastic! Now we are getting somewhere. Thanks for confirming. We've finally got a conclusive answer.

but some are interpreting for themselves what is fundamentally crystal clear within the T&C's.

You say it's crystal clear...... I haven't read the whole thread and I don't know what all the 'hysteria' is but I certainly wouldn't say the T&Cs are crystal clear. They state:
your FRISA will start from the date of your first deposit.
If a signature counts as a deposit, then why don't they simply say from date of application Icesave for example starts from date of receipt of cheque ( a more common understanding of the word deposit perhaps)

boobbby

Sooler wrote: »

I was informed of the same.

Transfers also qualified as the £3000 required funding for opening the account, so you could open the account and qualify for the 6.5% by completing the application and transfer forms to transfer £9000. You’d then be able to pay in £3600 during this tax year. The transferring money can take as long as it takes to transfer.

If the rate is fixed it’s fixed – jumping from 0% to 6.5% isn’t a fixed rate

This fixed rate ISA was set as follows

Under £3000 in this account 0%
£3000 or over 5%
£9000 or over 6.5%

Interest is calculated daily for the 12 months of the ISA so if you withdraw enough money to reduce your FRISA below £3000 you get zilch interest.

sloughflint

exel1966 wrote: »

yet from reading here you would think Lloyds are pulling out all the stops to pull the wool over our eyes and defraud us all. Well that isn't going to happen, Lloyds are a reputable organisation.

Well they are certainly not transparent that's for sure.
Having done such a good job in your previous post, would your Andover contact be able to confirm that there is no loss of interest on an internal transfer ( or external for that matter) because at the moment, and without seeing a post on this forum, ( referred to in # 743) the correspondence from LTSB make it look like a loss of a week's interest?
So I would have to agree with:

Lloyds haven't exactly helped in dispelling the myths and inacuracies that are appearing here

dkmax_2

exel1966 wrote: »

By signing a declaration to transfer dated prior to the rate drop, you have in effect made a 'deposit' and therefore are entitled to the tiered rate up to 6.5%. This is why your application must include a transfer authority form.

I view it slightly differently but with the same outcome . The rate is fixed when the account is opened - a process which has as a prerequisite a completed application form and a cash deposit or transfer authority. The contract clearly can only have effect if you have an opened - and therefore fixed tiered - account.

A momentary burst of mistrust arose in my case, because I don't trust banks and they coincidently bounced a bank-transfer until after the rate drop!

Sooler

boobbby wrote: »

This fixed rate ISA was set as follows

Under £3000 in this account 0%
£3000 or over 5%
£9000 or over 6.5%

Interest is calculated daily for the 12 months of the ISA so if you withdraw enough money to reduce your FRISA below £3000 you get zilch interest.

All fixed rates require no withdrawals.

"Guaranteed rate, fixed for a year when you make no withdrawals"

So if say you had £11000 and withdrew £1000, what rate does it drop to then? The Cash ISA rate?