Lloyds TSB 4% interest rate bank account

superstar_2

Do you need to make this you main account, ie. salary paid into this or can you just pay in £1000 monthly!?

LesU

superstar wrote: »

Do you need to make this you main account, ie. salary paid into this or can you just pay in £1000 monthly!?

No, just pay in a £1000 each month from any source and you get 4% on balances between £5000 and £7000. I pay my £1000 in and then transfer it at the end of the month into a Halifax Current account to get the £5 bonus offer. A few days later £500 of it goes into a fixed 5% Halifax regular saver account. I spend the rest.:D

mike22

What if I could not manage to put £1000 a month for whatever reason?

G_M

What if I could not manage to put £1000 a month for whatever reason?

It's really pretty simple. The answers're mostly here.

Blunty

I too set up one of these accounts last year. The rate's dropped (I think it was nearer 7% when I opened it) but it works pretty well. Interest is paid monthly. I opened it with a £5k lump sum and set up a SO for £1k from my 'other' current account. Every month, I transfer £1k back to my 'other' current account. I like LesU's idea of running it alongside a Halifax account paying the £5 bonus, though!

isofa

This is well covered already on the forums, I recently posted details of the breakpoints for % rates.

Try this thread and post 9: http://forums.moneysavingexpert.com/showthread.html?t=1386669

superstar_2

Thanks to those of you who replied to my question. Do you have to keep it netween 5-7K all the time or can you go over the limit but just need to ensure that its between 5-7K at the end of the month when the interest is calculated!?

JYK

Given the abysmal rates elswhere I find this one of the best accounts to keep up to 7K which is then instantly available for jumping into good deals which often don't last more than a few days. I've long been a L/TSB current account holder and like the flexibilty this account gives me.

isofa

superstar wrote: »

Thanks to those of you who replied to my question. Do you have to keep it netween 5-7K all the time or can you go over the limit but just need to ensure that its between 5-7K at the end of the month when the interest is calculated!?

Interest as with most accounts is calculated daily (and in this case paid monthly) so you get the rate of whatever the balance is, providing 1K was credited to your account each month. Anything in the account over 7K earns a very low rate (0.1% at mo I think) See my post on the other thread...

King_Drax_I

Plus when I set up this account, the extra services I was paying £7.95 a month for on the Classic account were about to jump up in price to £8.95. I would have been happy to pay that as I consider them good value. However, interestingly, although all but the name and interest rate of my account are still the same, because I had set up the new account I have now got the same services for a mere £3 a month for the first three months, and then it will be going up to £7.95 a month again - but not the £8.95 a month that I was going to be charged - wanted to post a link for the details but the stupid forum won't let me despite suggesting using links in the sidebar. Oh well. So anyway there was an added bonus there too

As for the post above about the error message:

139144 - Account Upgrade : Your account already provides you with the very best benefits and savings available from Lloyds TSB on a range of banking and other services.
Click on any of the left hand menus to continue.

well I got the same when I tried to update online like it said you could do. However, a quick phone call to their team was all it took to get it sorted out; I spoke to a very helpful lady who gave me that reduced price on the extras as well as switching for me. All in all a very positive experience.

One other thing - the interest is credited monthly. Good. Better in my account than theirs....:evil grin: