Lloyds TSB instant access monthly saver 8%

lipidicman

mary wrote:

However, decided to go iagain on 30th of this month and open it then, so that the payments go out on 1st June (using an internal transfer from Lloyds Online) so that I don't get into the possible complications of opening at the end of one month and having £750 potentially having about 3p interest for a handful of days.

Depends on the end date.....If you get your £750 in at the end of the month and get the next £250 in the next day then you up your average balance. This depends on whether the account matures 365x2 days after initial deposit OR at the end of month 24 (ie my strategy would shorten the life of the ccount) So which is it?

lipidicman

I found the answer from Payless' Link

Your Monthly Saver will end on the second anniversary of account opening

So best to get your £250 + £500 in now, and top it up on the first of the month, mary

This will mean that your average balance is boosted a little.

Prudent

All this maths is soooo confusing me -apologies. I asked for £500 to go in now and then £250 on 1st every month. Is that a mistake?

sloughflint

At the end of the two years it converts to a guaranteed tracker ( poor rate of interest). I think it can immediately be withdrawn out of GT again to plave of own choice.

Milarky

Prudent wrote:

All this maths is soooo confusing me -apologies. I asked for £500 to go in now and then £250 on 1st every month. Is that a mistake?

No that is a good strategy given that the 1st of June will only be 8 days after the initial payment. You could have done slightly better by opening the account on 30th or 31st with £500 and paying first regular amount from the following day. Your final payment, for instance will be on 1st May 2008 and the account mature 21 days later, so you will have gained 3 weeks interest on that - but not quite the full calendar month. The effect of this is to move all regular payments back by about the same amount of 8 days. This will result in reduced interest in the 8% account - but that is partly offset by the same money waiting to be paid in for the same 8 days. So if you get 4.5% from your 'feeder' account but miss out on 8% from the fixed rate account that's a 3.5% 'differential' (loss to you) on 24 x £250 x (8 days/365 days) x 3.5% or £6000 x 3.5% x (8/365) - about £4.60. (I think you'll be able to live with that!)

payless

less possible tax ! and the initial 8 days on the £500 ( OK pennies)

Plus of course the account might take a few days to actually be opened / standing order to be set up

Risk of product being withdrawn whilst waiting.( unlikely I know)

... so in most cases I would go with it

lipidicman

As I understand it you can pay in £500 now, another £250 as a standing order this month ('this does not include your first standing order' from the terms*) and then £250 on the first of next month


*this term is NOT clear though is it. There are situations where a second month SO would be 'within 7 days of opening' (the description for the 'up to £500') ie £500 on the 29th, first SO on the 1st of the next month. How have people taken this?. Can you wedge £750 in there in may, or just £500?

payless

One s/o each calander month

suppose it does not say 1 month apart , but you would have to get standing order setup quickly and then change it ( most s/o can be changed on line ?)

lipidicman

Exactly payless. With Hfax etc you do the opening balance at the end of the month and an SO early in month two. What is questionable with lloyds here is whether you can also sneak a first SO in in May. Fiddly I know, but maybe worthwhile

I got the £750 (£500 deposit +£250 SO) in the first month from the times article and then the terms you posted, but as I psted above the wording is ambiguous I think

I have printed them and I will take them to the branch in a mo

System

I have also made an appointment to go in to open this regular savings account, i too am going in on the 30th (bit too busy to go in before), i also want my standing order to go out on the 1st but am now wondering if i have given the system enough time to set up the process..... any thoughts?