Lloyds TSB instant access monthly saver 8%

jonesMUFCforever

Interest is accrued on a daily basis depening on the balance and is PAYABLE YEARLY.

Kazza242

zaccy wrote:

...

Anyhow, they assure me £500 has gone in today and there wil be a standing order for £250 noon tomorrow dated the 31st. I will then be able to change the standing order to the beginning of next month thus putting £1000 on interest almost immediately.

zaccy,

Be careful when changing the standing order that will top your balance up to £1,000 (see my post numbered 321 above). Lloyds TSB seem to be penalising those that deposit more than £750 into their monthly saver within 7 days of opening the account.

To avoid them penalising you, ensure that your SO (that makes your balance £1K), transfers money into your monthly saver 8 or more days after the official date that your account was opened. If you are penalised, then your SO will bounce shortly after the funds are transferred into the monthly saver.

Kazza242

zaccy wrote:

I called Phonebank this morning as no monies have left my current account. Now back in the UK again, perhaps they go offshore over the weekend.

Anyway had a reasonable conversation, the account takes 5 days to set up then the money will be transferred, the SO date will be recorded as the 31st of July and my next payment will be 31st of August. So I asked once my account was set up can I bring forward the SO date, the answer was no. Is this correct or just one persons interpretation of the rules?

My first LTSB SO went into my monthly saver on the 30th May and I then called telephone banking and had them change the date of my second SO to the 1st June. It all went through ok. All of my subsequent payments have gone in on the 1st, again without any problems.

However, some posters on this thread have complained of their SOs bouncing. LTSB first told them that this had occurred because it is not permitted to alter the dates of your SO once it has been set. There doesn't appear to be anything in the T&C's that states this. Also, I (and many others) on this thread have changed the date of the 2nd SO and haven't had any problems at all. I think the problems occurred because they tried to deposit more than £750 within that 7 day period after the account was opened.

I think changing the SO date should be ok. Just make sure that the first SO payment has actually gone in on the 31st July (today). Have LTSB confirm this or view it online yourself if you have this setup. You don't want to make the mistake of making two SO payments in one calendar month!

After the date has been confirmed and the SO payment is showing in your monthly saver, there is nothing to stop you asking for the SO date to be changed or doing it yourself online. Remember, do not transfer in more than £750 into your monthly saver within 7 days of opening the account. I also think that changing the second SO date to 1st August will make the first and second SO payment dates too close. Opting for a slightly later SO date in August should be ok.

lipidicman

zaccy, the £40 seems about right (I make £250*1.08^2=£291.60, or £41.60 interest) Hopefully however that payment will not be taxed like interest would.

KTF

Having thought about this, why is it not better to open the regular saver on the first of the month with the £500, then put in the 250 on the 7th then the next 250 on the 1st of the next month.

Wouldnt that gain you the maximum interest rather than putting it all in towards the end of the month or am I missing something here?

lipidicman

You are missing something. The account closes 2 years after opening. Opening at the end of the month, putting in £250 ASAP, and £250 at the start of the next month (possibly leaving 7 days here, see posts above) gets your balance up as quickly as possible and this maximises the interest. Your idea delays the injection of that second £250.

If the account matured at the end of a given month rather than after 2x365 days then your suggestion would be valid (ie by opening at the end of the month you would be missing interest earning days), however this is not the case

monki_man

grumbler wrote:

Very rough, but very simple calculation:
Opening balance £500
Final balance £500+24(months)*£250=£6500
Average balance (£500+£6500)/2=£3500
Extra interest rate 8%-4.5%=3.5%

£3500*3.5%*2(years)=£245 (gross)

I am confused, i thought if you put £500 to start your account, then set up a SO toward the end of the same month you opened the account, and then chnage the dates of your SO to 1st of the month you would get around £550 before tax?

mary_G_3

You are wrong martin
You can only apply for the monthly saver if your MAIN current account is with Lloyds (states on application form) I have tried at the branch,on line and over thephone no luck
advise
Mary G

KTF

I have send off all the signed forms to open a Lloyds account (in order to gain access to the monthly saver) and whilst it does mention that it needs to be the 'main' account (whatever that is) there is no pressure to make you switch to them.

It said on one of the forms that they might downgrade your current account to something basic if you didnt but that makes no odds to me as it will only be used as a door to the monthly saver anyway.

Aark

mary_G wrote:

You are wrong martin
You can only apply for the monthly saver if your MAIN current account is with Lloyds (states on application form) I have tried at the branch,on line and over thephone no luck
advise
Mary G

No, Martin is right. Have a look at http://forums.moneysavingexpert.com/showthread.html?t=216877&page=2 and all should become clear on 15 September (so I am told).