LloydsTSB Fixed rate Isa 6.5%

Sooler

egduj wrote: »

Don't forget that in order to qualify for 6.5%, you had to deposit at least £9000. Therefore, as the maximum allowable is only £3600, it would be impossible to achieve without a transfer.

A minimum deposit of £3000 was required to open the account. This could consist of a transfer and/or a cash deposit. This would obtain the tierd rate of 5% and securing, others have said, the other tierd rates including the 6.5% for £9000+

Ian_W

dkmax wrote: »

The existence of the £9000 tier can have no bearing on the ticking clock. It certainly suggests that transfers-in must be permitted ...

I agree with the 1st sentence but LTSB's own T&C's say the account starts when a deposit is made and [to paraphrase] that can either be a current year subscription or transfer in. How can the 12 months clock start before the account is even open?

But once again you are taking the ISA regulations and using them to determine when a contract starts. An ISA as a legal entity for a tax-year may not exist without a deposit within that tax-year but an account can do, even one that is destined to become an ISA.

No, it is LTSB have written their own T&Cs to reflect those regulations.
They have offered a 12 month fixed rate ISA, not a 12 month fixed rate account which becomes an ISA when funded.

Let's take another LTSB account by way of example; the Monthly Saver - you can see quite clearly that the clock starts when the account opens;

Rather odd to use markedly different T&Cs of a completely different account to interpret when the clock starts running for this ISA - BUT if you do, then the fact that one is opened by the application alone and the other requires both an application AND a deposit to be considered open stands out a mile!

I'm cool about it anyway. My expectation is that Lloyds will follow their own T&Cs and if I'm right and get 365 days interest at 6.5% - no problem, if not then I'll complain and go to the FOS if needs be.
LTSB staff have, in my experience which is also reflected in this thread, not been properly trained on this product and many have less understanding of ISAs than many who contribute here.

So to put it simply -
How can they offer a 12 month Fixed Rate ISA
then start the clock running before that account is an ISA?

earlgrey_3

Sorry, haven't read this thread right through but if the fixed rate term doesn't start from the date the account was opened, rather than a date up to 30 days or more later when a transfer in is received couldn't that cause even greater complications for some people?

If someone signed the form requiring and expecting to have his funds available to him 12 months on from then, he might be mightily peeved to have them held onto until an as yet undetermined date a month or more further on from then.

The term must surely date from the signing I'd have thought regardless of how long it takes the funds to arrive..

From my point of view I don't care when exactly the term ends provided it's clear to me. If rates have fallen by next year, another month at 6.5% might be nice, but equally, if rates have risen I'll want to take advantage of that as soon as possible. At this distance in time I really don't where rates will be this time next year.

Judwin

Does anyone have online access to the full terms and conditions of this FRISA?

Just returned from a meeting up the branch in an attempt to resolve :

http://forums.moneysavingexpert.com/showpost.html?p=9060031&postcount=157

Anyway, £30K was transfered into the FRISA, when I only requested a partial £20K transfer. LLoyds TSB are now refusing point blank to transfer the excess £10K back out again into any other ISA.

They (the LTSB ISA centre) say that PARTIAL transfers into or out of LTSB ISA accounts are no longer permitted. I have to transfer the FULL amount. They say this is a new restriction imposed this year.

But - my FRISA was opeend last tax year, so this woulds appear to be a one sided retrospective adjustment of the contract I signed in February.

So can anybody point me to the full T&C for this ISA, and specifically any sections to do with transfer in/out restrictions. My printed copies are at home and I want to get letters of complaint in the post ASAP - whilst the memory is fresh of what was a 'heated' discussion. :mad:

Cheers,
Judwin

boobbby

Judwin wrote: »

Does anyone have online access to the full terms and conditions of this FRISA?

Just returned from a meeting up the branch in an attempt to resolve :

http://forums.moneysavingexpert.com/showpost.html?p=9060031&postcount=157

Anyway, £30K was transfered into the FRISA, when I only requested a partial £20K transfer. LLoyds TSB are now refusing point blank to transfer the excess £10K back out again into any other ISA.

They (the LTSB ISA centre) say that PARTIAL transfers into or out of LTSB ISA accounts are no longer permitted. I have to transfer the FULL amount. They say this is a new restriction imposed this year.

But - my FRISA was opeend last tax year, so this woulds appear to be a one sided retrospective adjustment of the contract I signed in February.

So can anybody point me to the full T&C for this ISA, and specifically any sections to do with transfer in/out restrictions. My printed copies are at home and I want to get letters of complaint in the post ASAP - whilst the memory is fresh of what was a 'heated' discussion. :mad:

Cheers,
Judwin

What a load of rubbish...I also did a partial transfer of 20K from the Halifax. The form clearly stated the amount I wanted to transfer

The full amount is this years allowance that you may have paid into another provider although if it is a transfer from another provider from an earlier ISA then this should not appy. With new money (this years allowance) you can of course start another ISA with another provider.

Judwin

boobbby wrote: »

What a load of rubbish...I also did a partial transfer of 20K from the Halifax. The form clearly stated the amount I wanted to transfer.

I know it's a load of rubbish - but what can you do short of calling the bloke a liar.

boobbby wrote: »

The full amount is this years allowance that you may have paid into another provider although if it is a transfer from another provider from an earlier ISA then this should not appy. With new money (this years allowance) you can of course start another ISA with another provider.

The transfer was all previous years allowances - 2006-7 and earlier. There were no 2007-8 monies in the account, and there aren't any 2008-9 subscriptions either.

They are point blank refusing to transfer £10K out of the FRISA to anywhere.

boobbby

Judwin wrote: »

I know it's a load of rubbish - but what can you do short of calling the bloke a liar.



The transfer was all previous years allowances - 2006-7 and earlier. There were no 2007-8 monies in the account, and there aren't any 2008-9 subscriptions either.

They are point blank refusing to transfer £10K out of the FRISA to anywhere.

You should really have a copy of the application form you signed which would prove the amount you asked to transfer. (Form 12199-0207)

Judwin

boobbby wrote: »

You should really have a copy of the application form you signed which would prove the amount you asked to transfer. (Form 12199-0207)

I do have a copy, and it does say £20K. However, the Abbey mistakenly did a FULL transfer, and sent a cheque for £30K to LTSB, who then paid it into the FRISA.

LTSB originally agreed to transfer £10K out of the FRISA into their standard variable rate ISA, and compensate me for the 90 days loss of interest in doing so. This was in early March.

They are now (today) saying they can't/won't do it because partial transfers out of the FRISA aren't permitted.

Shambles :mad:

earlgrey_3

Judwin wrote: »

I do have a copy, and it does say £20K. However, the Abbey mistakenly did a FULL transfer, and sent a cheque for £30K to LTSB, who then paid it into the FRISA.

LTSB originally agreed to transfer £10K out of the FRISA into their standard variable rate ISA, and compensate me for the 90 days loss of interest in doing so. This was in early March.

They are now (today) saying they can't/won't do it because partial transfers out of the FRISA aren't permitted.

Shambles :mad:

Probably very difficult to unravel and getting decent compensation may be the only option. If the mistake was made by Abbey they'd be the ones I whose nose I'd be tweaking.

MONEYPENNY

MONEYPENNY wrote: »

I opened my isa yesterday at Lloyds at 6.5% by completing 2 transfer forms.
One was for the transfer of my TOISA (9500 for immediate transfer, the other was for the Barclays (6500) ISA which is locked in till the 26/4 08 otherwise I pay a penalty through loss of interest.
I was told he would take care of everything and would make sure I did not
suffer any penalty.
He also went on to say that I would receive the full 6.5% on the total amount (16000) with effect from today, naturally I queried this, but was told this is how they do business.
He was not a junior member of staff as he introduced himself as the Personal Banking Manager , I also did not have any sales push so I was well pleased.

I have just come off the telephone having spoke to the same person who opened my FRISA, outlining my concerns about when is interest payable from and what is the maturity date etc:.
His reply was the same as before stating that interest at 6.5% would be payable on the full transfer figure of £16000 from the next business day as it was just the same as writing a cheque for that sum,and my maturity date would be the day I opened my account ie:12/408.
He also told me I could add a further £3600 now even though no transfer has yet taken place, and the further sum would also receive 6.5% from the day following deposit.
I asked him if he could put this in writing ,which he has agreed to, so we shall see if he is good to his word.
I shall post again when I receive his letter confirming our conversation.
The soap opera continues , be sure to tune in for the next episode.