Lloyds TSB are now part of Lloyds Banking group after adding the HBOS brands to their group.
Lloyds TSB offer many financial products through their branches as well as online through their website.
The ISA (Individual Savings Account) is a good way to save as you can use your tax free allowance each year to add to your savings without the tax man taking money from the interest you earn.
Lloyds TSB offer a cash ISA saver, this gives you the option to set regular payments from your current account, and with the opening balance at just £1 you can save as much or as little as you can afford. The interest rate is currently 2% AER (correct at 7.1.10) variable, which includes a 1% introductory bonus. Withdrawals can be made, with the minimum withdrawal just £1 and interest is paid yearly on the 31st March.
The other ISA option from Lloyds TSB is the fixed rate cash ISA, this gives you a fixed interest rate for 12 months from when the account is opened. The minimum opening balance is £3,000, with balances up to £8,999 earning 2% AER, if you have more to invest tiered interest rates go up to 2.5% AER (rates correct at 7.1.10). The account is instant access but any withdrawal within the fixed period (12 months) will loose 90 days interest. ISA's from other providers can be transferred to Lloyds TSB.
Please check current rates before tasking out this product.
I have banked with Lloyds TSB since I was a student back in the dark ages! I have always been happy with the service I have received and saw no reason to change despite being offered numerous incentives by other providers. I bank mainly online but sometimes pay cheques into my account at my local branch. At the beginning of April I spotted an advertisement for a Lloyds fixed rate 1-year ISA paying a very tempting 6.5%. As interest rates seem to be moving downwards and my current provider, Bradford and Bingley, had just decreased the interest rate on my ISA to a paltry 5.5% I decided to find out more.
I'm sure most people will know what an ISA is and how it works. But just in case you don't an ISA (individual savings account) is a savings account where all the interest earned is tax-free. Anyone who is a UK resident over 16 (for a mini cash ISA) can open one. Each tax year you are allowed to save up to £3,600. The rules are different for a stocks and shares ISA but I'm not going to explain that in this review!
I was led into a side room by a very helpful advisor to learn more. The Lloyds 1 year ISA is only for those who can be sure they won't need to make any withdrawals for the full 12-month term. Withdrawals are allowed but only at the loss of 90 days worth of interest on the full amount of your money, not just the amount you withdraw!
To get the 6.5% interest you need to deposit at least £9,000. Unlike many other ISA's paying top rates, Lloyds allows you to transfer in previous years allowances. When you open the account you simply give Lloyds your current ISA providers details, including their address and your account number. It is important that you don't just withdraw the balance of your ISA, as you won't be able to pay it back into your new account. You are now allowed to deposit £3,600 into an ISA in any tax year.
Opening the ISA was very simple. As I already have an account with Lloyds I didn't need to provide any identification. I just needed my national insurance number and the account number and details of my old ISA provider. Banks are allowed to take up to 30 days to transfer your ISA to a new provider so you will have to be patient. It took Bradford and Bingley just over 3 weeks to transfer my money to Lloyds. Banks clearly are not keen to lose accounts to other providers and hold on to the bitter end!
On the 21st of April I received a letter from Bradford and Bingley confirming that they had now transferred my ISA to Lloyds as requested. I had expected the money to be electronically transferred and was a bit surprised to still see a nil balance on my ISA account on checking on line.
I went into my local branch to find out where my money was only to be told the money would have been sent by cheque and as the ISA had been oversubscribed it would take several weeks before the money would be credited to my new ISA account! I was not impressed as you can imagine. The manager told me he had several accounts waiting for their funds and he would be checking on a daily basis. Lloyds were apparently not expecting so much interest in their new ISA! Now tell me if I'm wrong but if you advertise a really high rate would you not expect people want to open an account? I was also told that Lloyds have had to take on lots of temporary staff to deal with the backlog! I have been promised my interest will be backdated from the time Bradford and Bingley closed my ISA with them but I will be checking!
Overall I am happy with the service Lloyds have provided me with over the years. However I am far from happy at the length of time it is taking to get my funds into my new ISA! I hope next week to log on and see some money in my ISA!
I have just checked and see Lloyds have now withdrawn the fixed rate ISA, so at least you know where your money is!
Lloyds TSB is the only bank I have ever been with. When I was 11 and was getting more pocket money than I could spend I opened an account with them. I chose Lloyds Bank as it was then called because my parents had always banked with them and had never had a complaint. All their services from the friendly staff in the bank itself to Lloyds TSB online has been first class. My pay goes into my account on Thursday. Every Thursday morning I log onto Lloyds TSB and check that the pay is correct. The service works brilliantly and is even updated more than once a day. When I bank a cheque in the morning and log onto Lloyds TSB in the afternoon the money is already in my account. When I was a student and wanted to open a second account there was no fuss and everything was done to the standards that they should be. I have no doubt that I will be banking with Lloyds TSB until the day I die.
Lloyds TSB I have been banking with Lloyds for a few years now and I have seen the changes in the way they do business over that time. That black horse has run some miles I can tell you. Banking with Lloyds is not the same since it became Lloyds TSB. When I first started banking with them I was working for a company that paid my wages into the bank monthly, that was the reason I opened the bank account in the first place I must admit. I was offered a cheque book and cheque guarantee card to go with my bank account, that meant I could overdraw by fifty quid near the end of the month. To me that meant I could go shopping a few days before pay day and pay by cheque, great I was always struggling for a pint of milk and a loaf of bread near pay day. I was beginning to like this bank. I had run up an overdraft of £200 within six months, then the dreaded day came and I was laid off from work. I had no income but a giro cheque; it was quite a worry. I went to see the bank manager and explained the situation to him and he was most understanding, we agreed a set figure to pay off the overdraft and of course I had to give up my cheque guarantee card. I stuck to the agreement for a year, and then I had an opportunity to start up in business, but I needed a bank loan. I drew up a business plan of sorts, and went to see my friendly Black Horse Bank Manager. I overheard the staff calling him ‘The Great White Shark’ I was not feeling very hopeful. I needed £3500.00 on a business loan, and I had no chance of getting it, banks didn’t lend to nobodies like me. Still, he was very amiable, he looked at my plan asked me what collateral I had etc. and all I could say was, ‘All I have is my word.’ I owned nothing, I had been on the dole for a year, I was in rented accommodation not ‘A Good Bank Manager Bet,’ but he took a chance on me for some re
ason. It must have been the way I looked him straight in the eye. Ten years down the line I am still with Lloyds TSB. I am still in business, not a big high flier, but I have a mortgage now, and a pension plan all through Lloyds TSB. I’m doing allright. BUT………….. I really do appreciate the opportunities Lloyds have given me, but I have to speak my mind. Well I am a member of DooYoo after all. Every time I go to see anybody at Lloyds whether it be to organise a direct debit or to talk about my overdraft, all I seem to get is a polished sales talk and an insurance sales pitch. I used to deal with a bank manager that acted like a bank manager, you know the man that sat behind the desk frowned and then agreed to help you. Nowadays it is not the ‘Great White Shark’ that helps me. It is a slick yuppie looking guy with a bright blue shirt and co-ordinating tie. He is there for one reason and one reason only, to sell me insurance, to set me up with a pension, or change my endowment policy into an ISA. I wonder if this new breed of bank manager would be so understanding if I ended up on the dole again and had to pay my business loan off at two quid a week. I very much doubt it. Come Back the Great White Shark!!!!!!!!!!!!!