lloyds current account interest rates

Like-a-Dream

I just use simple estimating to roughly check the interest so I was interested if anyone had done any checks on TSB to see if they've got their sums wrong in the past. I know it's not much for one account but if they're getting it wrong for thousands of customers that's a lot of moneysaver's money!

Someone else has mentioned to use a gross rate of 5.84%. If all or part of the account is not registered for gross interest then there'll be 20% tax withheld on the unregistered part of the account. My understanding is that the 5.84% gross rate applies only to the first £2500 in the account and anything over this gets the basic 0.1% interest, as someone else has mentioned.

On the matter of interest paid on cheques. The TSB t&c's say interest is paid from the date the cheque is paid in over the counter. But the 'small print' says only on the first £1000 of a cheque! I only found out about this when I paid in a £2000 cheque and interest was paid on only half of it until the cheque cleared some seven days later because there was a weekend and bank holiday in between.

Does anyone know of any other 'small-print' that TSB don't openly point out to us?

I think I'll have a go at doing a spreadsheet calculation or maybe there's someone from the banking system that can offer the method of calculation that the banks use.

gordon_smith_2

Well Yorkshireboy, the banks charge me £35.00 a time if I make a mistake, so if that is what they charge then I think it is only fair that I should charge them the same, even though my hourly rate is a little bit more. It might concerntrate their minds if they have to pay for their mistakes like we customers do.

LittleVoice

Like-a-Dream wrote: »

On the matter of interest paid on cheques. The TSB t&c's say interest is paid from the date the cheque is paid in over the counter. But the 'small print' says only on the first £1000 of a cheque!

Actually it's not the first £1000 of a cheque but is up to £1000/day in relation to cheques.

However, I didn't think the rule regarding that was "small print", it seemed fairly easy to see to me and was the same size of type. To quote from their website:

Start earning interest on cheques instantly when they are paid into your Lloyds TSB interest paying personal current account, as long as they are paid in over our counters between 9am-4:30pm weekdays and total less than £1,000 a day.

I've pasted that in directly and not changed the text in any way. I would even say it could be interpreted as not covering an individual (or combined) cheque(s) if they are over £1K in any one day. However, if they are as generous as you suggest (that is instantly pay on the first £1K of a larger cheque), if you pay in two cheques each of £1,500 you will receive interest on £1K, not £2K, from the day of paying in over the counter.

Milarky

YorkshireBoy wrote: »

How much do you think they should pay all their customers (for working it out themselves or asking on internet forums)? £5...£10? For 250,000 customers that'll be up to £2.5m. Is that a fair penalty for a technical glitch? I'd say it isn't..

All I can say, YB, is you must be on a big repeat 0% transfer at the moment to be able to come up and defend them like that! :rotfl:

YorkshireBoy

gordon_smith wrote: »

Well Yorkshireboy, the banks charge me £35.00 a time if I make a mistake, so if that is what they charge then I think it is only fair that I should charge them the same, even though my hourly rate is a little bit more. It might concerntrate their minds if they have to pay for their mistakes like we customers do.

Playing devil's advocate here, and ignoring the lawfulness of such charges, but you agreed they could when you signed on the dotted line.

Do your T&C's include a clause saying if they have a technical glitch (costing you a short term loss of a couple of pounds) then they will make you an ex-gratia payment of £x? No, of course they don't.

Don't get me wrong. I'm all for compensation and ex-gratia payments* where appropriate, but let's get real here. It's 2 or 3 quid...and will get put right.




* I recently transferred an ISA, and the transfer went horribly wrong (due to the receiving bank's incompetence). The original provider kindly re-credited my funds (for interest earning purposes) for the 6-7 weeks the cheque went walkabout in an A&L employee's bottom drawer...presumed lost.

However, there had been an increase in the old provider's rate in the interim period and before they sent the second cheque an employee manually calculated 6-7 weeks worth of interest, and his manager checked his figures. Unfortunately they made a mistake and used the old rate. The difference was £6 something. Did I want their heads on a platter? No, I simply asked them to send another cheque for the difference. Their obvious embarrassment was enough for me.

Having said the above, I very happily took an ex-gratia payment of £325 from A&L for giving me the runaround big style for 6-7 weeks.

YorkshireBoy

Milarky wrote: »

All I can say, YB, is you must be on a big repeat 0% transfer at the moment to be able to come up and defend them like that! :rotfl:

Like you, I can't get one Milarky. They're no playing ball at all, so it looks like we'll be parting company.

But seriously, it's not worth getting excited over is it?

As for the poster who "spent all my SAT morning to look for the papers, calculated the interest, making phone calls" chasing why he was a couple of quid down...well, I wouldn't have.

Milarky

Just put a 'Google Docs' version of the basic interest calculation spreadsheet up if that helps anyone.

http://spreadsheets.google.com/ccc?key=pcWCFgj3HX9sj42ln2-7baw&hl=en

johnmoney05

YorkshireBoy wrote: »

Like you, I can't get one Milarky. They're no playing ball at all, so it looks like we'll be parting company.

But seriously, it's not worth getting excited over is it?

As for the poster who "spent all my SAT morning to look for the papers, calculated the interest, making phone calls" chasing why he was a couple of quid down...well, I wouldn't have.

Oh, yes. Did you see WE all have been reading and responding this thread since this morning? Who's fault? A couple of quid? How many "couple of quid" we are talking about here? How much interest the bank earned during this weekend because of shortage payment interest to us? In any event, it is principle! It is our money, it supposes to be in our account rather than in their system.

Interestingly enough, the customer advisor DID mention that I was only a couple of quids down!

Why we all the savers upgraded to the 6% account at the first place?

Anyway, I am packing for my holiday now. By the time I come back in September, they better put back the "couple of quid" into my account. Otherwise my complaint letter will be on the way.

Horasio

Mine was lower too - hopefully they will adjust it after all the issues raised on here.

LittleVoice

A thought regarding LTSB "months".

When looking at payments in, the month starts with the second working day of the month. Does that affect anyone's calculations?