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MSE News: New Club Lloyds current account offers 4% interest – should you sign up?

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"Lloyds is replacing its Vantage account with a new bank account offering up to 4% interest on balances of up to £5,000"
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New Club Lloyds current account offers 4% interest – should you sign up?

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  • bsms1147
    bsms1147 Posts: 2,275 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Let's keep the discussion together:
    https://forums.moneysavingexpert.com/discussion/4926800
  • juliamarsh
    juliamarsh Posts: 365 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    It is my understanding from reading the information on the Lloyds website that in order to get the interest it is not only a matter of setting up 2 direct debits, they have to pay out each calendar month also. Is this definitely the case, does anyone know? As I currently have 3 Vantage accounts it will be difficult for me to fulfil this condition for all 3. Also, at present with Vantage you can transfer money from one to the other each month to fulfil the condition of paying in £1000/month. Does anybody know if this will apply to the £1500/month that has to be paid into the Club current account also?
  • masonic
    masonic Posts: 27,236 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    juliamarsh wrote: »
    It is my understanding from reading the information on the Lloyds website that in order to get the interest it is not only a matter of setting up 2 direct debits, they have to pay out each calendar month also. Is this definitely the case, does anyone know?
    Yes it is. It's clearly pointed out in the account opening email and in the T&Cs.
    As I currently have 3 Vantage accounts it will be difficult for me to fulfil this condition for all 3.
    That won't be a problem as you can't have 3 Club accounts.
    Also, at present with Vantage you can transfer money from one to the other each month to fulfil the condition of paying in £1000/month. Does anybody know if this will apply to the £1500/month that has to be paid into the Club current account also?
    There's nothing in the conditions that make this account different.
  • juliamarsh
    juliamarsh Posts: 365 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thank you masonic, you are always the fount of all knowledge! Are you only allowed to have one Club current account then? I could rustle up a couple of monthly direct debits but not 6!!
  • I am a long standing customer of Lloyds and when they first introduced their gold account I signed up and was given the offer that if I keep my account above a certain amount then the monthly fee would be waived. I logged on the online banking this morning and noticed this lloyds club offer which looked ideal. After clicking through it notified me that I would lose my monthly fee waiver. Not such a good deal for me (even though I have hardly ever used the perks!) Suppose I could open a new account and transfer into it.
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    juliamarsh wrote: »
    As I currently have 3 Vantage accounts it will be difficult for me to fulfil this condition for all 3. ?
    the vantage accounts do not need any DDs any longer so you if you have any on them, you can safely move them.

    Also, Vantage interest will crash to 1.5% max sometime in June/JUly, so you might not want to keep any of these accounts for much longer. Get ready to bail.
  • masonic
    masonic Posts: 27,236 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    juliamarsh wrote: »
    Thank you masonic, you are always the fount of all knowledge! Are you only allowed to have one Club current account then? I could rustle up a couple of monthly direct debits but not 6!!
    You can have one single and one joint account. Depending on how determined you are, getting the direct debits needn't be too challenging - there's plenty of discussion on this in the earlier thread bsms1147 linked to.
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    innovate wrote: »
    Also, Vantage interest will crash to 1.5% max sometime in June/JUly, so you might not want to keep any of these accounts for much longer. Get ready to bail.

    I agree it is quite a loss. However, 1.5% is still competitive, with the exception of Santander 123. I guess that this is the reason they are cutting the rate.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    bsms1147 wrote: »

    Agree, especially since this article is a bit slow off the mark as the account has been available since yesterday, and since the article contains some potentially misleading information. E.g. there is no mention that the 2 DDs must pay monthly, which is a pretty critical criterion for payment of interest. Why not give people a link to the T&Cs, which MSE should encourage anyone with an interest in the account to read anyway.

    Also, I just don't understand why MSE keep feeding the myth that there is a correlation between a person's income and the minimum monthly payments that must be made into an account.
  • Herbalus
    Herbalus Posts: 2,634 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    innovate wrote: »
    Also, I just don't understand why MSE keep feeding the myth that there is a correlation between a person's income and the minimum monthly payments that must be made into an account.

    To be honest, if such accounts were used exclusively for savings at 4% I doubt they'd last very long, so I'm not too bothered that MSE are looking at accounts from a viewpoint of ""normal" customer with one bank account".

    The difference in what MSE does and what I'd like them to do is where they present information about new accounts, but don't suggest the "tricks" about how to get the best out of them, like how to get savings DDs on them and fund it monthly with SOs etc.

    Though on second thoughts, when they have published things like that (like the 5 year fix ISA that was pulled before the email was fully sent out last week), they tend to go/be changed pretty quickly, so I don't mind figuring these things out for myself.
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