Lloyds rate dropping

ratechaser · 11 October 2016 at 2:09PM

Pain in the backside really, but just reinforces in my head that I'm probably right in shifting more cash into investments. Right now the 2.6% (minimum) that my investec tracker bond is paying out until November 2017 actually doesn't look too bad...

Anyway, it was lucrative enough while it lasted...

PeacefulWaters · 11 October 2016 at 2:47PM

Kim_13 wrote: »

Nothing mentioned about BOS, but Halifax changes coming apparently http://www.moneysavingexpert.com/news/banking/2016/10/club-lloyds-to-slash-interest-rate-from-4-to-2?_ga=1.85254878.696116361.1412375433

Odd, as I'd think the BOS accounts are costing them more money than the Halifax Reward that has been restricted to 1 for some time.

There will be ten times as many Halifax Reward accounts in operation compared to BOS Vantage. Perhaps more.

Thrugelmir · 11 October 2016 at 3:11PM

bowlhead99 wrote: »

Great for those of us already holding defensive assets though, as the price bubbles up to silly levels, which in turn helps boost the assets we bought for more speculative growth or income.

It's like a Russian Roulette version of pass the parcel, everyone wants to get to have a go holding it for a while, but make sure you're not left holding the bomb when it goes off.

Defensive assets? Such as oil majors that are borrowing to fund dividends. I'm surprised that someone of your stature is playing the game. I still laugh at those who believed LastMinute.com to be a sound investment and couldn't see the wood for the trees.

digannio · 11 October 2016 at 3:40PM

Aren't the Government about to come riding to the rescue of cash savers with some great new package? That's what I read anyway...pensioner bonds for all with rates to make the mouth water... or summat like that anyway! Stock up your cash pot, this time next year you could be a....:j

Westie983 · 11 October 2016 at 5:01PM

Dont forget if you have the club lloyds monthly saver you need to keep the club lloyds account open for the duration of the monthly saver, but nothing to stop you putting the funds elsewhere when it drops.

That said 2% isn't too bad in the scheme of things, if you have filled up Tesco and BOS accounts paying 3%.

Ed-1 · 11 October 2016 at 5:10PM

Westie983 wrote: »

Dont forget if you have the club lloyds monthly saver you need to keep the club lloyds account open for the duration of the monthly saver, but nothing to stop you putting the funds elsewhere when it drops.

That said 2% isn't too bad in the scheme of things, if you have filled up Tesco and BOS accounts paying 3%.

I don't think you do need to keep the current account to keep the monthly saver.

T&Cs only say you need a Club Lloyds current account to apply/open the monthly saver:

"To open the Account you must have a Club Lloyds current account, Club Lloyds Silver, Club Lloyds Gold, Club Lloyds Platinum or a Club Lloyds Premier account."

https://www.lloydsbank.com/legal/savings/club-lloyds-monthly-saver.asp

Westie983 · 11 October 2016 at 5:20PM

Ed-1 wrote: »

I don't think you do need to keep the current account to keep the monthly saver.

T&Cs only say you need a Club Lloyds current account to apply/open the monthly saver:

"To open the Account you must have a Club Lloyds current account, Club Lloyds Silver, Club Lloyds Gold, Club Lloyds Platinum or a Club Lloyds Premier account."

https://www.lloydsbank.com/legal/savings/club-lloyds-monthly-saver.asp

Go ahead and close your club account then, but I suppose you wont know your 'mistake' till the interest is applied, possibly at the monthly saver rate and not the club monthly rate.

I would keep the account open as a back up security to withhold the higher rate of interest, put in the £1500 you wont pay the fee, keep enough in the account to pay the monthly saver, and you still get the higher interest on the monthly saver.

In my case I opened the account again before the rate dropped so I am only in month 2 so I will keep my account open running low till September 17, to make sure I keep the 4% rate.

I suppose the choice is yours, but I agree it just says you have to have the account open the account, but as lloyds offer two monthly savers based on the account you hold, I would expect to hold that account for the duration of the monthly saver.

Ed-1 · 11 October 2016 at 5:30PM

Westie983 wrote: »

Go ahead and close your club account then, but I suppose you wont know your 'mistake' till the interest is applied, possibly at the monthly saver rate and not the club monthly rate.

I would keep the account open as a back up security to withhold the higher rate of interest, put in the £1500 you wont pay the fee, keep enough in the account to pay the monthly saver, and you still get the higher interest on the monthly saver.

In my case I opened the account again before the rate dropped so I am only in month 2 so I will keep my account open running low till September 17, to make sure I keep the 4% rate.

I suppose the choice is yours, but I agree it just says you have to have the account open the account, but as lloyds offer two monthly savers based on the account you hold, I would expect to hold that account for the duration of the monthly saver.

I have (well Lloyds decided to close all my accounts the other year) and I got the 4%.

They can't just change the rate of the account if there's no provision for it in the terms. The rate is 4% fixed end of (3% now) It's not like First Direct where the terms say the rate drops to the standard rate if the account is closed early etc.

I now have a Club Lloyds account and the monthly saver again and will be keeping the current account open for the cinema tickets.

PeacefulWaters · 11 October 2016 at 5:34PM

Westie983 wrote: »

Go ahead and close your club account then, but I suppose you wont know your 'mistake' till the interest is applied, possibly at the monthly saver rate and not the club monthly rate.

Theyd have to give written notice of the rate change. And I'd be amazed if LBG systems are smart enough to spot it.

I would keep the account open as a back up security to withhold the higher rate of interest, put in the £1500 you wont pay the fee, keep enough in the account to pay the monthly saver, and you still get the higher interest on the monthly saver.

As the market adjusts downwards, I'd do this just to keep the 2% and cinema tickets!

I suppose the choice is yours, but I agree it just says you have to have the account open the account, but as lloyds offer two monthly savers based on the account you hold, I would expect to hold that account for the duration of the monthly saver.

I'd expect Lloyds to comply with the contract if I do.

TheShape · 11 October 2016 at 5:36PM

Also,

You can make withdrawals from the Account at any of our branches but you can only make payments from this Account to a current or savings account in your name with us (or in the case of a joint account, in any of your names).

You'll want to have another Lloyds account or when it matures you'd have to go to branch and do a large withdrawal in cash.

I imagine I'll keep my Club Lloyds only to guarantee the Monthly Saver Rate and for the cinema tickets.

Lloyds rate dropping

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