0.25% Interest!

[Tilly2]

I had a letter from LLoyds bank today telling me that my Cash ISA was 'changing'. The 'change' is a drop from 0.50% to 0.25%! What...........?

I'm off to another provider. Post Office or Sainsburys. Probably Sainsburys having looked at Money Supermarket.

More hassle!

[frugalfred]

I'm getting 1.3% with M & S Bank.

[bhg481]

1.56% with Virgin Money.

[frugalfred]

Are transfers in allowed, bhg?

[Tilly2]

Thanks both.

Why is LLoyds so low?

[bhg481]

Yes, transfers allowed.

[frugalfred]

Thanks, bhg. Every penny counts!

[Tilly2]

Notice for withdrawls please, bhg?

[Tilly2]

I agree with that, Fred. Why I am still with LLoyds at 0.50% is a mystery to me. I must have let that pass me by. :-(

[bhg481]

No notice, uptp 3 withdrawals a year or the interest rate drops.

http://uk.virginmoney.com/savings/find/defined_access_e_isa_issue_3/overview/

[frugalfred]

Tilly, you should look at this site. It seems changes were made in Aug 15
www.lloydsbank.com/rates/savings/cash-isa-saver.asp

[Tilly2]

Divebuddy, I don't need to re read it it says:

On Jan 28th 2016 we will be making the following changes to your Cas ISA Saver:

Your interest will change from 0.50% to 0.25%

[fiction-factory]

They all reduce them in the hope you don't notice. Loods probably have another, newer, account which pays more. But yes, you can get around 1.5%, and maybe a bit more for a longer term deal. The best deals now are non iSAs- regular savers (I have 2 paying 5 % and 6%) and current account switching deals (santander 3% for savings up to £20000 and a few paying around 5% for smaller amounts, although these are currently taxable.
(I assume you are too young for those pensioner bonds!)

[ubasses]

Pensioner Bonds are now closed. Just hope they have another issue in the future.

[Tilly2]

It's a bit of a minefield isn't it?

[Tilly2]

Yes, FF. I am too young!

[Tilly2]

Divebuddy, you are reprieved. They blind you with complications and permutations.

[VHG]

>>>Why is LLoyds so low?

They are not low.

ISAs are not forever.

When you take them out they may be for 1 year or 2 year or 3 year and you get the interest you start with for that length of time.

However once your 1 year or 2 year or 3 year are "up" then they reduce the interest, dropping it bit by bit till they pay maybe 0.25% like yours.

Just go back in to Lloyds and say you want to move your money to another better ISA and they will do it quite happily.

DONT take your money out your ISA or you lose the ISA protetction.

If you open an ISA at another bank get THEM to move it to the new bank, dont YOU move it.

ALWAYS keep track of when your ISA "matures" so you can move it to another ISA.

[Tilly2]

I am not going to take the money from My Lloyds ISA.

Sainsburys will take it out and pay me 1.40%.