Lloyds 6.5% deadline - xfering Barclays ISA

ericpode

I opened a Lloyds TSB ISA a couple of weeks ago while the 6.5% offer was still on by transferring a couple of old ISAs from elsewhere.

I'm now considering also transferring last year's Barclays ISA (which has just reached the end of it's introductory higher rate) to the Llloyds TSB ISA.

I spoke to someone on Lloyds TSB's ISA phone number last Friday and they said that if an ISA was transferred in before the end of May then it would get the full 6.5% for the rest of the Lloyds ISA's 12 month period.

I asked whether he meant the transfer form had been submitted by end of May, or the funds had actually arrived at Lloyds TSB by end of May. He said he THOUGHT that the funds had to have actually arrived by then, which means that I'd have to submit the transfer form NOW and hope for the best that Barclays would complete the transfer to Lloyds by end of May.

But there seemed to be some uncertainty about this - has anyone heard the same thing?

Also, is Barclays known for effecting transfers-out reasonably quickly?

earlgrey_3

My guess is that he was wrong.

If they agree to do the transfer it can't affect you how long they take to do the transfer when you have no control over it - assuming there's no notice required to the old provider. Nor can they ask you to sign an open ended agreement and initiate a transfer without knowing what interest rate you'll get. When you both agree the transfer then that's the deal at whatever interest rate is on offer at that point.

The only other possible scenario I could see would be if they refused to accept the transfer when it arrived. Not sure if that's possible but must be very unlikely.

Perhaps call the LTSB number to see if you can find out more: 0800 015 0060 I think.

sloughflint

earlgrey wrote: »

Perhaps call the LTSB number to see if you can find out more: 0800 015 0060 I think.

Sorry to disillusion people but don't expect much sense from that number. These were the people that couldn't give me an up to date balance,said that interest would start to be earnt from the date the funds show on the account ( a week after date of cheque) after listening to a recorded message stating that interest was backdated to date of cheque.

earlgrey_3

sloughflint wrote: »

Sorry to disillusion people but don't expect much sense from that number.

You don't seem to have much luck.

What would you suggest?

What I'd do is call the freebie number and see what you get. If necessary go into the branch; if necessary ask for the manager; if necesary have him put whatever he says in writing.

Afraid life's like that sometimes. Not always straightforward, no good moping about it or losing sleep. When banks offer good rates they tend to be busy. If it's too much hassle the other option is to not go chasing after every slightly better rate.

sloughflint

earlgrey wrote: »

You don't seem to have much luck.

I'd say I have been a lot luckier than some poor people who have posted on the main FRISA thread. but have certainly been on the receiving end of some of the 'mis'information offered.

What I'd do is call the freebie number and see what you get. If necessary go into the branch; if necessary ask for the manager

For this product, I'd say it's best to bypass this normally sensible method.From my own experience and having read that thread, it is clear that contradicting verbal information on many aspects of this ISA is being given from both branch and phone staff.

What would you suggest?

Compose letter and seek clarification in writing on any aspect we are not clear about. That also may prove not be correct ( again one only has to refer to the thread to see this) but at least it's something in writing that can be used later if necessary.

Afraid life's like that sometimes. Not always straightforward, no good moping about it or losing sleep. When banks offer good rates they tend to be busy.

Agreed. Some of the problems ( eg transfer time) customers are experiencing with this FRISA are highly likely to be due to sheer volume of applications. But not all.

ericpode

There was something on Working Lunch the other day about not knowing what interest rate you'd get because some bank/BSocs were taking so long to process ISA transfers. They also said that the 30 day rule applied from the date the "from" bank received the transfer paperwork, but there was NO rule about how long it took the "to" bank to send the paperwork through to the "from" bank - so in theory the total transfer could take a lot longer than 30 days and still be acceptable to the FSA.

Nor can they ask you to sign an open ended agreement and initiate a transfer without knowing what interest rate you'll get.

I think that was one of the issues that people had been complaining about to Working Lunch.

I suppose I could ring again, or write but the time to get a written reply would eat into the time to the end of May.

Even if the written reply was incorrect I've no idea how I could tell if this transfer really was getting the full 6.5%.

sloughflint

ericpode wrote: »

Even if the written reply was incorrect I've no idea how I could tell if this transfer really was getting the full 6.5%.

You wouldn't be able to tell until next year and if you didn't get 6.5% despite a letter saying so, you'd have the hassle of complaints procedure etc.

Why not just transfer into another ISA eg Nationwide 1 year fixed @6.15%.
On last year's money ( assuming that you mean one year's contributions only), that's a difference of £10.50 interest on the full £3k.
But the fixed rate may change before the transfer takes place.