Lloyds TSB instant access monthly saver 8%

Yes, it was raised here by amy21 a few days back. But thanks for linking to the Times article - our first hard detailed look.

Have just done some sums based on the Times article info.

FIRST YEAR: Opening credit of £750 and 11 payment of 250 monthly thereafter. Average balance in account £2125 and interest payable 8 percent gross of this : £170 (£136 for basic, £102 for higher rate taxpayer)

SECOND YEAR: Opening balance of £3670 (non taxpayer), £3636 (20%) or £3602 (40%). Added to this is the average balance for 12 monthly payments of £250, starting on the 1st anniversary: £1625. So that's 8 percent of either £5295 (non taxpayer), £5261 (20%) or £5227 (40%): £423.60, £420.88 gross/£337.34 net (20%) or £418.16 gross/£250.90 net (40%)

[The times gives a final figure of '£7095' possible which equates to gross interest of £595 - for a non taxpayer I assume. I work the same thing out as £170+£423.60 or £593.60]

If you assume that there is an initial 'pot' of the total paid in over two years (£6500 max) in a 'feeder' account paying the Bank of England rate of 4.5% and that rate is also fixed for two years then the 'blended rate' of interest on the whole sum can be estimated:

FIRST YEAR: Total £6500, average in LTSB RS £2125, therefore average balance of feeder £6500-£2125 or £4375. Gross interest (same for everybody): 4.50% x £4375 or £196.88

SECOND YEAR: variable opening balance in feeder of £3196.88, £3157.50 (basic rate) or £3118.13 (HR taxpayer). Average moved to LTSB RS in year £1625, so Gross interest based on a balance in feeder of £1571.88, £1532.50 (basic rate) or £1493.13 (HR taxpayer). That is £70.73, £68.96 gross/£55.17 net (20%) or £67.19 gross/£40.31 net (40%).

Combined:..........................Year 1..............................Year 2

Non taxpayer
LTSB..................................£170.00..........................£423.60
Feeder................................£196.88...........................£70.73
Total (a).............................£366.88..........................£494.33
Balance (b)........................£6500.00........................£6866.88
(a)/(b)..................................5.64%.........................7.20%

Basic rate
LTSB..................................£170.00..........................£420.88
Feeder................................£196.88...........................£68.96
Total (a).............................£366.88..........................£489.84
Balance (b)........................£6500.00........................£6793.50
(a)/(b)..................................5.64%.........................7.21%

Higher rate
LTSB..................................£170.00..........................£418.16
Feeder................................£196.88...........................£67.19
Total (a).............................£366.88..........................£485.35
Balance (b)........................£6500.00........................£6720.13
(a)/(b)..................................5.64%.........................7.22%

hmm. Can I afford 3 reg savers.
Will do my best... when can we apply?
gimme gimme gimme!

EDIT: AH, available tomorrow. Yippeee

I am simply hopeless at maths and can't follow all of the above. However the concensus seems to be its a good rate. I have a current acount with Lloyds - how do I apply for this? I looked online this morning and couldn't see anything. Do I need to go into a branch?