LloydsTSB Fixed rate Isa 6.5%

sloughflint

Bogof_Babe wrote: »

The Lloyds TSB ISA has just been mentioned on Working Lunch, to say that unlike some other providers, the rate is guaranteed at what it was when you opened the account. So that's a relief!

What a shame they couldn't have clarified all the other aspects raised in this thread.

whu

I was told by HMRC that the 30 days starts from the date that the old provider receives the request

earlgrey_3

Careful_ly wrote: »

Asked when 1 year is up, told from date of application

Can't see that it could be anything else. But look at it this way, at this point no one knows what the rates will be in 12 months time. Someone else could be offering 7.5% by then - so the sooner you get your money out the better. Could go either way so not really something to lose much sleep over.

sloughflint

earlgrey wrote: »

I would, so what I'll do is wait till they say the transfer is completed and if it isn't clear when the term ends I'll ask them.

If there's any problem I'll call the guy who did the paperwork, he gave me his card with his direct line, and ask him for clarification in writing.

Unless a problem arises in getting the clarification I won't worry about it before then. So far they've kept me fully informed and I'm quite happy. YMMV.

I don't know at what point you started to read this huge thread,earlgrey but the problem is even if your guy gives you clarification in writing, it makes us non the wiser because we are getting different things in writing that can not all be correct.
So unless something official is given like above re old/new rate people will be entitled to, we are not going to know the term for definite until it's ended and will have to wait until we can see that it has reverted to the variable rate before planning next move.
A kick in the teeth for organised MSEers used to planning/chasing best deals.

I'm now going to conjecture from what Bogof_Babe has put, that it looks even more likely that the clock ticking starts from application date and therefore impossible for anyone to get 6.5% for a full 12 months but can I be sure? Is this too logical for LTSB?If so it would make a mockery of my letter.

earlgrey_3

My old granny used to say don't start worrying till you've got something to worry about.

I assumed there'd be delays so we opened two LTSB ISAs, including one for my wife, and asked them to transfer everything everything from Kent Reliance. Then we paid in this years money into Kent Reliance straight away. That way all our money is getting 5.75% at KR or whatever it is and will all get 6.5% when it eventually gets transferred.

If there's any confusion at any stage I'll get it clarified in writing so there's no argument later. I don't anticipate any problem and not a big deal. I'm not worried about 0.75% difference on a few thousand for a couple of weeks. On £9K it's about £1.30 a week - the price of a coffee. :rolleyes:

sloughflint wrote: »

it looks even more likely that the clock ticking starts from application date

Quite. I assumed that from the outset and can't see how it could have been otherwise. Would be amazed if it wasn't.

If there's anything you aren't sure about, provided it's clarified preferably in writing for you there's no problem.

boobbby

Okay here goes:
I received a letter from the Lloyds Cash ISA Team confirming I will receive the accruing interest (gave the exact amount) which is from the date on the cheque from the previous provider. It was 10 days later they had entered the cheque in my Lloyds FRISA account so I have been given 10 days interest. I also caculated the interest by multipling the amount on the transfered cheque by 6.5% and dividing by 365 then multiplying by 10. Lloyds got it correct down to the last penny!! :T

They also confirmed the 12 month start date for this FRISA is the date on my application form and NOT the date they received the money or paid it into my account.

The only interest lost is the difference between what I was getting from my previous provider and the Lloyds rate which most sensible people didn't expect until the money had been transfered.

It was always impossible to have got 6.5% from day one as the most you could have paid into the ISA was £3000 (£3600 this tax year)

Never mind!! it means I can transfer to another provider after 366 days or take money from this ISA. At least I know where I stand and can calculate exactly the interest I will receive and the 12 month ending date of the fixed ISA.

I think most people will be pleased to know there is no complete days loss of interest while the transfer takes place. (you will still get the daily interest from your previous provider until the transfer date on your cheque and then Lloyds wil pay the 6.5% for the remainder of the fixed rate term):j

munk

whu wrote: »

I was told by HMRC that the 30 days starts from the date that the old provider receives the request

The problem that was just highlighted on Working Lunch today is that there's no time limit on the amount of time that the new provider has to take in sending off transfer requests to the old provider which basically makes the 30 day limit for transferring in from an old provider useless.

Working Lunch 25/04/2008
(relevant info on ISA transfers is at 20mins in)

I've only skimmed this thread briefly but get the impression that this is what's happened to a lot of people here - Lloyds have been so swamped by applications that they've been taking a month or more just to process the transfer applications and send them off to the old providers. So in most cases this means it's taking over a couple of months to transfer ISAs - one month or more to process the initial transfer application and then the extra 30 days once the old provider eventually gets the transfer application.

Personally I've just had a letter from my old provider asking for my ISA passbooks so they can complete the transfer out from them to Lloyds, so they've obviously just got the transfer application through from Lloyds - 2-3 weeks after I applied to Lloyds. So I'm counting the days now and would expect the transfer to be complete within 30 days.

sloughflint

earlgrey wrote: »

My old granny used to say don't start worrying till you've got something to worry about.

I like that.

I do completely see where you are coming from earlgrey about the grand scheme of things but I just can't stand not understanding something and am even more frustrated when completely contradicting information is given by LTSB on this and various other aspects to do with this account.

Can I call on people here to try one last time to help me get my head around this 12 month term thing once and for all and if I don't get it, I'll forget it?


I seem to go from thinking it could be logical to start from application then go back to thinking it should be from deposit which is how I first interpreted the situation.People seem so confident in stating it starts from application I wonder what basic fact I've missed.

You see, I started to think about post 961 and that it was decent of LTSB to agree the rate at application time compared to say Nationwide who put:
You can transfer cash ISA funds from another provider to any of our cash ISAs. However, please bear in mind that if you opt for our Fixed Rate ISA Bond its rate may have changed by the time we receive the funds.

Am I being really dense here but wouldn't that imply that the contract/term with Nationwide must start when they get the funds if they are considering imposing the rate of the time of receipt of funds? Or has it got nothing to do with it?I'm back to square one.

What is so stupid about taking the sentence "your FRISA starts from deposit" under the heading "account opening" literally in determing the term?

Utterly confused now. Sorry if this is really obvious ( I'm getting the impression it might be) but I clearly have a mental block on this.

whu

Agreed - this is all confusing - I have posted previously information I have got from various people at the Lloyds helpline - the 12 months starts from the date of application but as long as the application date was before the 6.5% rate was pulled you will get that rate irrespective of when the money comes over from the old provider - however I have since been told in branch that the 12 months will start from when the money arrives from the old provider and that I will get a letter to this effect - still waiting but will update as and when it arrives

gelato_cat

25th April: Received three letters (one for each current ISA) from Lloyds dated 21st April saying that they've written to my ISA providers, who have 30 days to send my money over.

Letters also say they will write to me again when the money has been transferred.

I will keep checking my other ISAs online to see when they are closed...

Suze

Suzey wrote: »

This is my timeline so far:

9th April: Went into local branch to open FRISA. Was told I have to make an appointment and the first available was on the Monday. I said that I'd heard that the 6.5% rate was being withdrawn at the weekend and they all denied it. I made the appointment.

Was not satisfied, so when I got home I went on the Lloyds website to find the freephone number to apply over the phone. However, saw that they were now offering the option of opening the account online (which wasn't there when I checked some days before). Clicked on that and the account was open in under two minutes. When I get five mins I'll ring the branch and have a rant.

11th April: Filled in transfer forms online and printed off.

14th April: (Day I should have gone for my appointment) interest rate now showing on Lloyds website as 5%. I HATE having to deal with people in banks *fumes*. Thanks to all those on here for the heads up re the withdrawal of the 6.5%.

14th April: Took forms to local branch. The guy there was much more helpful and said he would keep an eye on my account to see if the transfers had gone through and gave me his card, so at least there is someone in a branch I can call if I need anything.

Now: waiting for my transfers to go through, from Egg, NS&I and YBS. Haven't received anything in the post from Lloyds at all (eg welcome letter).

Just logged onto Lloyds online banking and see that there's nothing on there saying what date I opened the account, which makes me wonder about this date of first deposit thing... They can obviously see in-branch when I opened the account, though, so I'm not too worried...

Edit:

19th April (today): Just rang the freephone number to check they have the forms. They received them the day after I took them to the branch, which is good, but there are no notes to say that they've written to YBS et al. Apparently this isn't unusual as the quality of the notes depends purely on the individual entering them...

When does the 30 days start? Is it 30 days from when YBS et al receive the requests, or 30 days from when Lloyds receive the forms?

Suze