LLoyds TSB fixed rate cash ISA

Robusty

hi there,

i had previously opened a 6.5% fixed rate cash ISA with Lloyds TSB at the beginning of april, and now, according to their web site, the interest rate of this fixed rate cash ISA has fallen to just 5% only!!! so what would happen to the interest rate of the account i opened with lloyds earlier this month?? ( the transfer from my old isa has not even been done yet!)?? this is the link to Lloyds tsb's savings site http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp

so would my isa's interest rate be dropped from 6.5% to 5% as well??! but it was a fixed rate at 6.5% when i opened it though! whats happening??!?

thanks in advance.

m00head

I did the same thing as you at around the same time, and am also still waiting for the ISA transfer to happen, although they do say it can take up to 30 days.

Anyway, if you click on the 'view full interest rates' link on that page you get a table of the current interest rates for the account, followed by:

These interest rates are correct as at 14/04/2008.

For accounts opened before 14/04/08 View previous rates.

The 'view previous rates' link takes you to what the same table looked like when you signed up for the account, showing the 6.5% rate, followed by:

These interest rates were correct from 28/01/2008 to 14/04/2008.

In summary, you should still have the interest rate of 6.5% that you were promised when you opened the account (before 14/04/2008) as it is a fixed-rate account not a variable-rate one.


Welcome to the world of 'suck, slap, & flog', as Martin puts it.

jo_b_2

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL]

sloughflint

Robusty wrote: »

hi there,

i had previously opened a 6.5% fixed rate cash ISA with Lloyds TSB at the beginning of april, and now, according to their web site, the interest rate of this fixed rate cash ISA has fallen to just 5% only!!! so what would happen to the interest rate of the account i opened with lloyds earlier this month?? ( the transfer from my old isa has not even been done yet!)?? this is the link to Lloyds tsb's savings site http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp

so would my isa's interest rate be dropped from 6.5% to 5% as well??! but it was a fixed rate at 6.5% when i opened it though! whats happening??!?

thanks in advance.

...............
See here

Robusty

thanks!! and yeh, up to 30 days for the transfer to happen is what i've heard as well.......

another question.....

I want to put more money into my ISA, should I put it in the new Lloyd fixed rate cash ISA? or should it put in the my old (current) ISA account??? would it make a difference???


thank you once again!

roddydogs

Its "Up to 30 days for the current provider to respond" overall its more than 30 days, as many in another thread have found out-with me its 6 weeks and still waiting.

debbie42

roddydogs wrote: »

Its "Up to 30 days for the current provider to respond" overall its more than 30 days, as many in another thread have found out-with me its 6 weeks and still waiting.

That takes all the resposnsibility away from the new provider to acually contact the old one? LTSB took 17 days to tell me they had contacted my old provider. It will be 30 days tomorrow that I opened it. So, I'm not holding my breath, but how long should I wait before complaining?

whu

Hi
I would suggest that if you dont hear from the old provider within 30 days of the letter from Lloyds (saying they have contacted the old provider) you should contact the old provider and ask when the money is going to be sent to Lloyds

Robusty

hm.....sounds like a pain.....

I've got another questions to ask:

the new rate for this ISA is UP TO 5.50% tax free....so let say, what i now invested a full £9000 in the isa, would i still at the 6.50% rate?? (it was up to 6.50% tax free when u sav up to £9000, but thats when i opened the ISA account back in beginning of April....since lloyds got this new lower rate of UP TO 5.50%......am i affected if i do save up to £9000 now?)

Thanks

KTF

If you opened the ISA before the rate was lowered then you are on the original 6.5% t&c. If you opened the ISA after the rate had changed then you are on the lower 5.5% rate as the t&c are different.

Robusty

but i wasn't (b4 the rate has changed) originally at the 6.5% rate since i didn't (and dont! lol) have £9k!! but say now i have 9k and put it in the ISA, would it automatically go up to the 6.50% rate or the current 5.50% rate? (i'm sorry if i repeated the question, but it wasn't clear)

thanks