I went to my local Lloyds branch today to open his and hers Fixed Rate ISAs:
http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp

Transfer in at least £9,000 and you get 6.5%. Sweet. Although unfortunately for me (and mine) we don't have £9,000 in cash ISAs yet. No problem I thought, I'll just pay in the £6,000 now and top it up next tax year. However, talking to the bank manager he reckoned that wouldn't work as the 6.5% rate (of which 1% or so is a bonus) will probably have been pulled by the 08/09 tax year. I was sure I'd read something about it being open until May 2008? Ah yes that was just to cater for the time it takes to transfer ISAs (?!) explained Mr Manager. He then mentioned some kind of 8% cash ISA that's available when you open and deposit £4,000 in a shares ISA with them. Probably deserves further investigation although I should imagine the cash ISA part won't accept transfers in.

Still, good customer service I though. I do like Lloyds.

Thanks for the info. I think I will open one of these on Monday and move my ISAs from A&L and HBOS to them. I was initially put off by the 1 year fixed deal - i.e. tying your money up - but the way things are going with IRs perhaps it is best to fix now. This economy is a mess.

On the page you linked, it does say '(only) available until 31/05/08'.

From the first day you open a FRISA, your 'bonus year' begins, so if you can't open it with £9k+, then you'll be wasting some of your potential to receive 6.5% for the full 12 months; instead you'll squander some of that 12-month period on a much less attractive IR.

It's hard to imagine that the bank manager is correct, though. If this fixed-rate ISA deal is published as being available until the end of May '08, I don't see how they could stop you putting £6k in now, then a further £3k+ in after April 6th, but, as I say, the time between opening the FRISA and it having at least £9k in it will be nibbling away at your 12 month bonus period.

One alternative you may have heard of is Barclays' Tax Haven ISA. It doesn't accept transfers in sadly, but it does offer (once again as an introductory bonus 12 months) 6.5%.

If you're able to, you could stick £3k in now, and a further £3.6k in after April 6th.

In either case, they're introductory bonus periods, so if you can be bothered, you'd be looking for something new in about twelve months' time.

Thanks for that OJ. Yeah, as I didn't want my money to languish at the 5.15% rate, my first question to the guy was whether I could open the account today and fund the account £9,000 all in one go in the next tax year. No go. I was pretty sure that it was within the ISA rules - it's just when you add funds to multiple ISAs in the same year things get iffy -- but Mr Lloyds was having done of it.

Yeah, looks like it'll be the Barclay's ISA if Lloyds' offers vanishes on 6th April. Failing that... Icesave? Although with the possibility of further sterling decline it looks like a BoE rate increase may not be so unlikely in the coming months..!?

Got myself one of these earlier today. 6.5% fixed for 12 months seems a reasonable bet. It`s the highest rate I can find for a mini cash ISA at the moment. The only downside is if base rates go up, and ISA providers start increasing their rates, you might be able to get >6.5% within 12 months. I doubt if the BoE will increase the base rate any time soon, and if they do, I doubt that it will be by any more than 0.5%. OK, your money is "tied up" with Lloyds for 12 months, but most people will use ISAs for longer term saving anyway. I think that Barclays are offereing 6.5%, but isn`t it variable ? Although they are offering a 1% "bonus", what`s to stop them dropping their rate? Also, you can`t transfer previous ISAs into Barclays offer. Aren`t Lloyds one of the "safer" Banks too ?

In other words, I think that the LLoyds deal is very good.

Went into a Lloyds branch this Sat. to transfer in my ISA to them, forgot to bring in my NI number!

That happened to me, too. However, we set it up anyway (typing in a best-guess NI number -- that turned out was hopelessly wrong), and I just phoned them up with the number after I'd returned home.

It didn't seem to hold anything up.

I've been looking into the Lloyds fixed rate ISA too but wasn't sure of the restrictions that can be placed on ISA transfers. I was certain I would be able to transfer the money in but I wasn't sure if they could restrict transfers out. A bit of a poke around Money Saving Expert and I found this link:

http://www.moneysavingexpert.com/savings/cash-isa-transfers

To summerise:



However as a caveat:



Strange thing is I've just had a quick dig around the Lloyds website and I can't for the life of me find the full terms and conditions for the ISA. I'd want confirmation that there wasn't an explicit transer fee or 30 day loss of interest before I transferred my money in as I'll probably want to take it out next year!

Good question, though I can't find any full T&C either, it sounds fom the little information they give that you get the interest rate "when you make no withdrawls" and interest "paid at account maturity". It isn't clear what happens when you make a withdrawl, so you'll probably have to speak to someone at Lloyds to find out.

Edited to add: I found this which will answer your question, It looks like you will lose 90 days interest if you move away before 12 months:
http://forums.moneysavingexpert.com/showpo...mp;postcount=40

Nice find, the post explicity states



but I'll pop into a branch to get this 100% confirmed, I'll post up what they tell me.

The 90 day withdrawl penalty is mentioned in the small print on my leaflet. I'm about to put together another post regarding the 1.5% bonus rate you can earn and I'll put the full clause in that post.

Want to earn 8% per anum on your cash ISA? Well according to a leaflet I picked up from Lloyds TSB's Moorgate branch you can (it's at this point I REALLY wish I had a scanner). And just to be really helpful there is no reference to this offer on their website

Anyway, the large text on the leaflet states:



And underneath that comes the headline conditions



And the bombshell (which I've only just noticed ) in the small print is



Note that offer end date is 31st May 2008 (subject to availability).

Now even with these clauses this still looks like a good deal (although I've no idea what fees Scottish Widows levy on their Investement ISA so that could put a spanner in the works). The problem that I can see (and it applies to me) is that most people aren't going to have the necessary £9,000 in the Equities side of the ISA wrapper. Not to worry, because of the impending ISA changes due in the next tax year this isn't actually a deal killer. A new clause has been added, as of the next tax year "Savers will also be able to transfer money from cash Isas to equity Isas", click here for more on changes to the ISA rules. If you do consider converting some of your cash ISA to an equity ISA then I would recommend using up this years £4,000 allowance if you haven't already, you can then do another £5000 next year and put the rest in the cash ISA.

In my opinion I wouldn't be putting money into the stock market at this precise moment unless I was going to be keeping it there for a VERY long time. Personally I'm looking into european govenment bonds at the moment as they seem to be a way to gain exposure to currency speculation but still be in a highly secure and yielding asset. Furthermore govenment bonds see capital appreciation (only if you sell it) in a falling interest rate environment, index linked govenment bonds also provide protection against inflation. The down side of bonds is that the maturity date must be at least 5 years after purchase date, for more details on current ISA limitations try this link.

Hopefully some of you found that helpful.

PS: found a reference to the offer HERE

_{PSS: As a side note does anyone else think the Scottish Widows women looks like a Beni Gesserit?}

I was in A&L yesterday and they are offering 10% on a mini cash ISA if you open a current account with them and have your salary paid into it. You can't transfer previous years allowances into it.

How risky is A&L?
I had heard they had secured funding from credit suisse until 2009 but don't know how true this is, anyone any opinions.

As an aside Mrs HM banks with A&L andhas never had any problems.

I have had my salary paid into A&L for the last five years. From next month onwards it goes into the Nationwide. That's how safe I think A&L is. I've only left enough money in it to keep me going 'til next pay day.

Popped into a branch of Lloyds TSB today to ask a few questions, it went something like this:

CASH ISA QUESTIONS

1. Any transfer penalties at the end of the fixed term?
A. No Fee, and no interest rate deduction.

2. With my current ISA if I wait until the next financial year when interest is added and then add my full £3,600 allocation can I then transfer?
A. yes, this is fine but if the product becomes fully subscribed then it may be pulled.

3. Any forms I can take with me?
A. Yes, but out of them at the moment.

4. Can I open the ISA now and then at a later date transfer the mony in?
A. I think the answer was a no?
Regardless, the fixed interest rate period begins from the time the account is opened so you would be loosing out!!

5. How long does the transfer take?
A. Transfer is instantanious (when it actually happens), on returning the forms Lloyds will arrange the transfer.
Additionally the account will be opened at the same time the money is transferred in so that you get the full years fixed rate.


SCOTTISH WIDOWS INVESTEMENT ISA

I Spoke to a financial adviser about this product, he didn't seem 100% clued up on it so I'd suggest double checking. Additionally the meeting was rather rushed as he was trying to fit me in before his next appointment.

1. Tell me about your ISA product
A.

1. Investment horizon is about 5 years
2. Funds available reflect your attitude to risk
3. 0% balance charge until 31 May 2008, normally 5% (he surely must have meant .5%!)
4. Managment fees are absorbed into fund return (not a separate transparent charge)

2. Your website quotes approximately 12 Funds, can I pick and choose my investements or am I limited to just those 12?
A. Only those 12, your cannot pick indvidual shares and bonds.
Each fund (really a fund portfolio) invests your money into a range of funds in accordance with the portfolios goals (risk profile and asset class)

3. To qualify for the bonus rate does it have to be via a transfer in or can I open an ISA now using this years 4k allowance and then invest another 5k next financial year.
A. Yes, that is fine.

4. What if I have an equities ISA with another provider and want to transfer it in?
A. You would have to liquidate the ISA and transfer over the balance and then re-invest it in one of our fund portfolio's.

I'm going to schedule a proper meeting I can go through the fund options in detail, I suspect there IS the option of investing in the specific underlying funds instead of the fund portfolio. I'll have a further dig around their site regarding this.

Questions I should have asked

1. If I fill in the cash ISA application form today, when is the account opening dated from, surely the time of the transfer?
(Lady on the enquiries desk said the ISA application department was swamped at present, so might take a few weeks)

2. If I open up an investement ISA today will I be able to use this years Equity ISA allowance, even if the application takes three weeks to process?


<sub>Questions I really really should have asked as the FA was starting to piss me off

1. I see you have table showing yearly returns by asset class in your brocure, why does it only go back to 1992?

2. In said table I see that equities took a beating in 2000 (-5.9%), 2001 (-13.3%), and 2002 (-22.7%) considering that was a bear market and we appear to have just entered into another one now, do you consider equities a good investment at this time.

3. Further more, considering the affor mentioned bear market and pesistence of this 'credit crunch' why do you suggest I should like to convert over half my cash ISA into an equities ISA?

4. In all likelyhood we are entering a recession, do you really think that corporate bonds are a wise investement, especially as the bond issuers appear to be financials (e.g. top holding is in A&L)?

5. why do you keep pointing out I'm young?
etc...</sub>

I am treating it as a fixed term tax free bond for 12 months. Put the cash in, forget about it till April 2009. End of story. They offered me the Scottish Widows shares bit but I declined and just wanted the cash component.

Thanks for the comprehensive replies KUMA. Echoes my experience talking about the 6.5% cash ISA and answered pretty much every question I had remaining about the 8% ISA + associated fund thingy!

And 5% charges aren't so uncommon on funds. That's why fund managers all drive around in Mercs while their customers' investments resemble smouldering craters.

I really dont understand how some people here are only opening cash isas for this year now (Mar)...and then again in April...

Surely you must have opened your cash ISA back in last April or where am i going wrong...??

It's late in the day to be investing in the 6.4.2007 - 5.4.2008 ISA season, but it's still worthwhile.

They are doing it now to make sure they tuck away however much they can afford during this financial year, which ends April the 5th 2008. Maximum allowed in the year just ending being £3000 in a cash ISA. That ensures that the money benefits from the ISA's tax free status for as long as it's in the ISA. Ordinary cash ISA's are open ended. Draw the money whenever you wish.

They can open a new ISA after April 6th 2008 using the increased allowance of maximum £3600 for the new financial year.

The principal tip with ISA's is to use your allowance every year, however late you put it in!

Does that clear up your query?

delboypass

My phrase 'open-ended' applies only to the ordinary cash ISA. Lloyd's one year fixed rate ISA obviously fixes the rate for only one year after you've taken it out. Thereafter you should check who is offering the best deal currently and transfer, if needed.

I agree with your sentiment -- All else being equal, opening (and depositing up to the limit in) a cash ISA as early as you're able (i.e. April 6th) would generally be the right thing to do.

It's not always true, though, that all else is equal!

I'd assume those who didn't open a cash ISA at the start of the current finacial year fall into two categories

1. Didn't have the money
2. Didn't know about ISA's
(actually a 3rd; those who don't care about money)

The first time I took out a cash ISA it was at the end of the financial year, that was the year I started work so I didn't have either the savings or concept of what an ISA was. Now I make sure that I always add to my cash ISA at the start of the financial year.

Personally I've never added to an equity ISA, it's only recently that I've acheived what I consider an 'acceptable' understanding of equities, the market dynamic, and the various tax benifits the ISA wrapper offers. Furthermore I would judge that any equity investment that a person makes before they acheive this basic level of understanding is purely a speculative move and is likely based on the advise of a salesman (I think they call them financial advisors now days?).

For what it's worth I consider the equities market far to volatile at present to consider investing in on anything but a very long time frame. The only reason I am considering it for this tax year is that Scottish Widows are in effect guaranteeing a 1.5% tax free return on any equity ISA investment. As long as I can find a fund that pays ~ 3.5% net over the next year then with the 1.5% bonus rate it will work out 5% net, that is as good as any savings account out there at present.

I normally open mine at the end of each financial year - usually in March so there is little point opening another one again in April. Yes, I lose the 12 months interest but I like to keep my options open if I think the markets are low and can then opt instead for a shares ISA rather than a cash one.

I opened this year's one back in Feb because I concluded that the stockmarket was too risky - wish I had sold my one share ISA last Dec now - and will this year open another cash ISA in April because I know I have no intention of going into shares in the next 12 months.

I've transferred a lot of money into this fixed rate ISA. Although the branches tell you theres no loss of interest, the reality is different. I had to get them to backdate 12 days interest to compensate for the delay between my old ISA closing and the money being credited to LLoyds. There a large thread about it from disgruntled owners of this Lloyds fixed rate ISA on moneysavingexpert.com

Their customer service is appalling and their staff clearly have no clue about ISAs.

OK, am I missing something obvious here? If the limit is 3k / person / annum on a cash ISA, how can I be allowed to invest 9k & over in the Lloyds 6.5%, given that it's listed on their site as a Fixed Rate Cash ISA?

You could transfer ISA funds from previous years (potentially in addition to using this year's £3k and/or next year's £3.6k).

I got the impression I could just turn up with a cheque for 9k...

Where did you get that impression?

This is my first ISA, so a bit of a learning curve for me.

Spoke to them this morning, & they confirmed that's for moving existing ISA's across. Lesson learned, thanks.

Right, went in to Lloyds today and opened up two of these fellas. Hooray. Although unfortunately I only had one cheque left in my chequebook and thus was only able to fund one of the ISAs up to the £9000+ rate band. DOH. Will sort the other one on Monday.

How on earth do you open TWO of these???

Drag your SO along.

Right I'm all done, just need to wait for NS&I to transfer funds across.

Bloke at Lloyds said these are closed to new business now.

Dunno. BUT I did open my Lloyds ISA and xfered in my A&L one.

I money

Frank

That's not what their website says, I wonder who's right.

http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp

I've called them out on that with two different Lloyds bank managers and they say the 31st May thing is to allow for the time it takes for ISA transfers in (as you'll need to transfer in to get the £9000 top rate). Of course it can't hurt to pop into a branch and try and open one if anyone's still interested.

I must be blind. I can't see the closing date on that webpage.

Anyway, the point of my post: My sister went to open an ISA with Lloyds TSB yesterday and they told her they were pulling the deal on Friday this week. Anecdotal I know...

With all that sticky pink gum all over your glasses , it's not surprising you can't see it

It's written within the green box .........

Silly me! Thanks!

family member opened one today over phone so still going for now.

Apparently transfer between institutions has to be made by cheque to retain ISA status on money. Lloyds will start paying interest from the date of the cheque. Wonder if the institution that transfer out is made from pays interest until the cheque is cashed or if days of interest are lost altogether in the transfer?

Friend of mine has got the green light to open one of these too - wonder why Lloyds are so cagey about these...

How does that work? My current ISA doesn't have a chequebook?

How did you transfer in you A&L ISA? Did you have to make the £3K deposit before they would let you make the transfer?

Basically all I want to do is transfer my ISA without making an additional deposit.

institutions write each other cheques..

Do they send the cheque direct or do they send it to the account holder to make the deposit in a branch?

They send it direct, Lloyds handle the transfer so you don't need to do anything other than tell them your existing ISA details and sign the authority form.

I opened one today with £3600 for this tax year, and am transferring in previous years to get over the £9k. No problem in the branch, the girl said they'd been extremely busy with ISAs!

You can apparently do that too, although I didn't.

Exactly what I will be doing tomorrow, transferring an existing ISA cash fund with no extra deposit. I have an appointment with Lloyds at 10am and will let you know how it goes. All you need is a passport, NI number and your current ISA details and you are sorted. Oh and an appointment fo course if you are not an existing Lloyds customer.

Thinking of opening an Abbey instant access ISA with this years £3600 @ 6.25% though. Staying away from stocks this year so dont mind tying up my big chunk of cash for a year with Lloyds, but I like the flexibility of having the instant access on the smaller amount with Abbey....just in case.

Cheers guys!

Right.. All done this morning, ISA transfer in process.

BAD NEWS;
Deal ends on the 12/04/08, which is this Saturday (odd day?) and not the 31/05/08 previously advertised. Looks like they are over-subscribed. Lloyds are pretty protected from the the sub-prome fall out, or so I have read, so this combined with the good rate must be encouraging new customers.

There appears to be no on-line facility or official opening statement sent to you, you have to access the branch to enquire about your account, you can't even phone. I found this a little odd. All I have is a few forms with my new account and sort typed in on them. The Girl said you will recieve a statement when the account matures (12 months).

GOOD NEWS;
If you do withdraw during the 12 month period, you only lose 90 days interest on the amount withdrawn and not the total balance.

Interest will be back dated from the date Lloyds send the Form off to your current bank that you have the ISA with. She said she would send it off today. She also said the bank that you currently have your funds with must take less than 30 days to send the money to Lloyds. In the meantime while your current bank has the funds you will be gaining interest on it until it is transferred to Lloyds, also Lloyds will be paying interest on the balance as well, as long as they send the form off pronto. Double interest! So I hope my current bank takes its time sending the funds to Lloyds.

1.5% above base rate can't be bad these days.

Hope this helps

I ended up just opening one online - I already have a current account with them. I was given a new account number automatically. There was a screen with the option to fund the account with either a transfer or a new deposit. It was clear that either of these was acceptable - but I chickened out and put a new deposit in. I don't trust them to complete the transfer in time and then try to back out of the deal.

I completed the transfer form online, but then it said I had to print it out and post it to them