Obviously, if you're not already a Lloyds TSB ISA holder, the only way to achieve a balance of £9k+ (and, hence, achieve 6.5%) is by transferring other ISAs into Lloyds TSB (but they do permit transfers, so that's fine).

If you can't come up with £9k+, this ISA product isn't so good, interest-rate wise.

Here's a link: Lloyds TSB Fixed-rate ISA.

One thing I haven't yet established (and I'd like to), is whether there's any penalty for transferring this ISA elsewhere if it doesn't look so good after the fixed-rate period expires (after 12 months).

Apparently, there's no penalty for transfers from this ISA, and, just to emphasise, the 6.5% for balances of £9k or greater is just for 12 months, so you'd have to start shopping around again in 11 or so months' time...

I'm pretty tempted by this, especially as Lloyds TSB came out so well in this week's Money Week article on the safety of banks!

Can anyone think of a reason why I shouldn't be going for this?

Don't hold back!

Thanks for this. I have 15K worth of ISAs in the Halifax and am looking to diversify. This is a better rate than the Halifax also.

Has the info you have found give any advice on how long a transfer takes? Been put off by posts on this forum and others re Bradford and Bingley taking ages to transfer money/open new accounts.

Ah, no withdrawal allowed. Don't fancy tying my money up at the current time. Personally, I think IRs will be on the up by the end of the year. Suspect Lloyds think the same also.

Becoming a bit of a gamble now though. NS&I down to 5.8% as of today.

I wondered this too but with IR's down again today it would have to rise a fair bit again to make the 6.5 % rate look bad. Might be an idea to grab this ISA before it is pulled?