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lloydstsb and standing orders / direct debits

s71hj
s71hj Posts: 916 Forumite
Part of the Furniture 500 Posts Name Dropper Combo Breaker
in Budgeting & bank accounts
I'm in the process of trying to work out the best arrangement for my monthly dds and s/os to maximize my interest. Am I correct that if I set these up from my lloyds tsb premier direct account I will get extra interest because you continue to receive interst for 3 days after the payment goes out. Am I correct in undersatnding the lloyds t and cs in this way, and if so, are they the only bank that does this?

Comments

  • SalsaDanca
    SalsaDanca Posts: 434 Forumite
    Part of the Furniture 100 Posts
    You are correct, LLoyds TSB will pay you interest for three extra working days after your money has left the account by standing order or internet transfer, but I don't think it applies to direct debits. They will also pay extra interest on money paid in by cheque or transfer from another bank. Lloyds TSB's website says that they are the only bank that does this.

    Make sure that you have one of their Plus accounts, as the standard accounts pay a very low rate of interest. I have a Classic Plus as that is their only high-interest current account without a monthly charge, and to qualify for the higher interest rate I have to pay in at least £1,000 per month.

    Premier Direct is an Alliance & Leicester account, not a Lloyds TSB one.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I know it's getting very complicated these days but several banks have 'Premier' accounts.
  • earthmother
    earthmother Posts: 2,563 Forumite
    Part of the Furniture
    Thank you Salsa Dancer - hubby has a Classic account with the TSB (0.1% AER) and we didn't know about the Plus account - just upgraded online, so from tomorrow, we'll be receiving 4% AER instead

    :T
    DFW Nerd no. 884 - Proud to [strike]be dealing with[/strike] have dealt with my debts
  • s71hj
    s71hj Posts: 916 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    SalsaDanca wrote:
    You are correct, LLoyds TSB will pay you interest for three extra working days after your money has left the account by standing order or internet transfer, but I don't think it applies to direct debits. They will also pay extra interest on money paid in by cheque or transfer from another bank. Lloyds TSB's website says that they are the only bank that does this.

    Make sure that you have one of their Plus accounts, as the standard accounts pay a very low rate of interest. I have a Classic Plus as that is their only high-interest current account without a monthly charge, and to qualify for the higher interest rate I have to pay in at least £1,000 per month.

    Premier Direct is an Alliance & Leicester account, not a Lloyds TSB one.

    I emailed customer services and this is an exert of their reply;
    "Thank you for your e-mail about interest payments.

    This functionality also applies to direct debits and internet transfers as
    well. "

    so Lloyds would seem to be a good account to have s/os and dds coming from given that it has a fairly high interest rate anyway, and has the added bonus of the high interest monthly saver.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    earthmother wrote:
    Thank you Salsa Dancer - hubby has a Classic account with the TSB (0.1% AER) and we didn't know about the Plus account - just upgraded online, so from tomorrow, we'll be receiving 4% AER instead

    :T

    As long as you pay in at least £1000 per month.
  • humfer
    humfer Posts: 1,779 Forumite
    earthmother wrote:
    Thank you Salsa Dancer - hubby has a Classic account with the TSB (0.1% AER) and we didn't know about the Plus account - just upgraded online, so from tomorrow, we'll be receiving 4% AER instead

    :T

    Bet thats the easiest money you will make in a long time!!! Recently opened a Plus account and just happened to be talking to a colleague at work who was with Lloyds still on the basic account, so its obviously something Lloyds don't highlight very well to their existing customers
  • earthmother
    earthmother Posts: 2,563 Forumite
    Part of the Furniture
    ejones99 - that's not a problem - all our money goes into that account :)


    Humfer - definitely the easiest money - not worked it out yet, but even a few pounds makes a difference :)

    Hubby has had his account for almost 10 years - they've tried to upgrade him to one with fees on several occasions, but never mentioned this one - I wonder why :rolleyes:
    DFW Nerd no. 884 - Proud to [strike]be dealing with[/strike] have dealt with my debts
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