LloydsTSB Fixed rate Isa 6.5%

boobbby

derrick wrote: »

The spokeswoman was not form HMRC, but was Carol Knight from Tax Incentivised Saving Assoc, and she said "the 30 days start from when the new manager accepts the application forms" therefore, if we accept what she says, for all of us applying at branches the 30 days starts from then!

However she also said "that we are looking at eliminating the use of cheques and making ISA transfer electronic" !!!
That is possible now under HMRC rules as they do not care how the transfer is made as long as it confirms to the rules!

And that interest should not be lost as the new provider should pay from the stopping by the old provider and interest payments should be seamless!

The programme can be watched at Working Lunch, by clicking on Fridays prog, the ISA article is 45 minutes into the programme.

brilliant link

DavidAC

This ISA is a hell of a lot of hassle. I have had conflicting advice from them about when the 12 months starts like a lot of people have. I was told today they have received a cheque from my previous ISA provider but it has not been credited to the account yet and that it will not earn interest until it has. This they say could take a few days after receiving the cheque. The Lloyds ISA pays about 1/12 more interest than my old one one, i.e 6.5% compared to about 6%. So if it earns no interset for one week it will take 84 days for the higher Lloyds rate to make up for it. The Lloyds fixed rate will only apply for about 11 months because it took one month for the transfer. Then after the fixed rate it could be on their low standard rate for 30 days after I request to transfer it out. When all this is taken into account I think the effective interest rate will be much lower than 6.5% and not worth all the hassle.

4leafclover_2

Well said - I had begun to wish I had just gone for Icesave. I went for an A&L deal last year and it had so many T&C to watch out for that I came out OK with a lot of time and effort, but my friend got almost £200 charges - when trying to close down the account. I should have learned - simple is best!

sloughflint

DavidAC wrote: »

This ISA is a hell of a lot of hassle. I have had conflicting advice from them about when the 12 months starts like a lot of people have. I was told today they have received a cheque from my previous ISA provider but it has not been credited to the account yet and that it will not earn interest until it has. This they say could take a few days after receiving the cheque. The Lloyds ISA pays about 1/12 more interest than my old one one, i.e 6.5% compared to about 6%. So if it earns no interset for one week it will take 84 days for the higher Lloyds rate to make up for it. The Lloyds fixed rate will only apply for about 11 months because it took one month for the transfer. Then after the fixed rate it could be on their low standard rate for 30 days after I request to transfer it out. When all this is taken into account I think the effective interest rate will be much lower than 6.5% and not worth all the hassle.

This is addictive viewing.
DavidAC, did you see my post further up? You should ( just a bit more hassle now and probably next year) hopefully be able to get a full 12 months.
Get them to say so in writing and if it doesn't happen in a year's time then at least you have some ammunition.
I don't know if quoting HMRC guidance notes (5.3) and (A1.2) of LTSB T&Cs count for anything. Should do.

roddydogs

The working lunch link is very good-however how do you get L/Tsb to agree and act on this-especially the bit about "Seamless" transfer of money.
I have been assured that i COULD lose "UP to" 30 days interest"- and i will post the e-mail link which says so if anyones that interested.
as also its not paid till the end of the "Year", you wont know till then, anyway.

sloughflint

roddydogs wrote: »

The working lunch link is very good-however how do you get L/Tsb to agree and act on this-especially the bit about "Seamless" transfer of money.
I have been assured that i COULD lose "UP to" 30 days interest"- and i will post the e-mail link which says so if anyones that interested.
as also its not paid till the end of the "Year", you wont know till then, anyway.

roddydogs:
I've seen your email reply and in fact looked at all your other posts on this thread.
Your experience is outragious. ( sorry if there are equally bad experiences, highly likely, but I haven't trawled through the 45 odd pages)
I hope you are taking this much further right now regardless of the £100 offer and regardless of the future plans mentioned in working lunch.

roddydogs

Theres only 5 days left of my 30 days "Second" application, and the money is still with my original providers-ill keep you posted

DavidAC

I have just had another read of their T&C. It states "Interest will be calculated daily on the balancd of the account". Unfortunately I have seen nothing about how long it will take to add a cheque to the balance after receiving it. When I finally get a statement from them with the transfer in the balance I will try and get some sort of written confirmation as to when it started earning interest. I will quote whatever I can to try and make it from when my previous ISA provider stopped paying interest. I am transferring over £32K so for every day it earns nothing instead of 6.5% I am loosing about £5.70, about £40 if it takes a week!

I would be grateful if someone could post some links to regulations, T&C etc that I could use.

gelato_cat

If you dial the 0800 ISA number (it's in this thread somewhere, sorry I don't have it to hand) there is a recorded message saying Lloyds will pay interest from the day after the date on the cheque(s) from your current provider(s).

HTH

Suze

DavidAC wrote: »

I have just had another read of their T&C. It states "Interest will be calculated daily on the balancd of the account". Unfortunately I have seen nothing about how long it will take to add a cheque to the balance after receiving it. When I finally get a statement from them with the transfer in the balance I will try and get some sort of written confirmation as to when it started earning interest. I will quote whatever I can to try and make it from when my previous ISA provider stopped paying interest. I am transferring over £32K so for every day it earns nothing instead of 6.5% I am loosing about £5.70, about £40 if it takes a week!

I would be grateful if someone could post some links to regulations, T&C etc that I could use.

Baldur

DavidAC wrote: »

Unfortunately I have seen nothing about how long it will take to add a cheque to the balance after receiving it.

One of my previous ISA Managers transferred my first tranche of funds on 26th March, the date of deposit in LTSB internet banking is shown as 28th March.

BUT

They appear to have lost all trace of the second transfer of funds from a different former ISA Manager, despite the fact that I have received letters from the former institution informing me of the transfer and from LTSB acknowledging that they had credited the funds to my FRISA!

I am in the process of composing a formal letter of complaint at the moment.