Lloyds Monthly Saver now up to 5%

dazeruk

I've just had my first deposit paid into my account. I've now changed the payment date to the 1st. There seem to be two reasons for doing this.

1 - I'll have £500 in the account right at the start. This money will get the 5% for the full 12 months.
2 - I'll get 13 deposit into the account within the 12 months, although the last payment will be in the account for less than a month.

Dagobert

The account just appeared with its first monthly SO paid in to-day.

Changed to 1st June now.

Gorgeous_George

Pay in the maximum of £250 per month and you earn £68 interest net. This is 5% gross but I have money in West Bromwich earning 4.3% so this extra account would net me about £1 per month extra.

I know you should look after the pennies and I'm as keen to do that as most but, is it worth the time involved?

Please someone - convince me!

GG

baby_boomer

As a "proper" investor, GG, your time is far too valuable to waste on a thread like this!

Update

My mum called Lloyds after 6.00pm on Thursday. The Regular Savings account, first payment and s/o were all completed by 12.00 noon Friday.

oldfella

Please someone - convince me!

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not sure if this is convincing, but with 13 payments, and the first going in on the 28th - I make it £73.75 net

no trouble to setup and run - I much rather I had the extra interest rather than Lloyds

jimbow25

Gorgeous_George wrote: »

Pay in the maximum of £250 per month and you earn £68 interest net. This is 5% gross but I have money in West Bromwich earning 4.3% so this extra account would net me about £1 per month extra.

I know you should look after the pennies and I'm as keen to do that as most but, is it worth the time involved?

Please someone - convince me!

GG

How much is your time worth?

I have my own rule of thumb for how much I'd need to gain for it to be worth opening and monitoring one more account, personally I wouldn't bother for about £1 a month but you may feel differently.

anna42hmr

mines showing online now so all fine, looks like they set up standing order for 30.5.09?? given thats saturday, doubt it will be taken then, so have switched it to 2.6.09 (tuesday)

sloughflint

Gorgeous_George wrote: »

Pay in the maximum of £250 per month and you earn £68 interest net. This is 5% gross but I have money in West Bromwich earning 4.3% so this extra account would net me about £1 per month extra.

I know you should look after the pennies and I'm as keen to do that as most but, is it worth the time involved?

Please someone - convince me!

GG

I'm not trying to convince you of anything but you are not comparing like for like.
I guess the Bromwich account was the e-bond ( no longer available) that doesn't allow withdrawals or extra deposits?

If you have a lump sum and a drip feed account paying 2% say, the overall gross interest on £3250 ( if open close to month end) is approx £ 120 or 3.7%.

If you can beat 3.7% or don't fancy the hassle then don't bother with it.

oldfella

sloughflint wrote: »

I'm not trying to convince you of anything but you are not comparing like for like.
I guess the Bromwich account was the e-bond ( no longer available) that doesn't allow withdrawals or extra deposits?

If you have a lump sum and a drip feed account paying 2% say, the overall gross interest on £3250 ( if open close to month end) is approx £ 120 or 3.7%.

If you can beat 3.7% or don't fancy the hassle then don't bother with it.

he has a fair point - the marginal benefit of putting £3000 over the year at 5% compared with 4.3% is about £9

sloughflint

oldfella wrote: »

he has a fair point - the marginal benefit of putting £3000 over the year at 5% compared with 4.3% is about £9

Not really. This LTSB product doesn't allow a lump sum deposit of 3k and the 4.3% account no longer exists so not an option for comparison purposes.

The poster is either considering putting in new monthly money at 5% or using a readily available lump sum.
If the latter, s/he needs to decide what is currently best available at the moment for lump sums. If 3.7% can be beaten ( see below) then not to bother.

One option might be to find an extra 2k from somewhere and use the LTSB current account @4% for flexibility or less flexible with a 2k minimum:

http://www.stroudandswindon.co.uk/internet_savings_bond7.aspx