Lloyds TSB instant access monthly saver 8%

jimbow25

I've just tried to open the Classic current account ahead of starting one of these savers, and I've had a letter from the bank asking me to confirm my net income: the following page says they actually need to know "the source of my income together with how often it is received and the amount expected".

I wasn't planning to use the current acount regularly or pay my wages into it, I was hoping to "just stick £1 in" as the advice page on this site suggests you can, so do I need to call them and say I want the current account to do proper current account stuff, or can I say "it's an extra account for spare money, I don't want to pay a salary into it"? Will they refuse me?

jinkssick

if your planning on putting £1 in then you better leave it. They need an initial deposit of £500 then you can place the highest amount which is £250 to get the highest possible interest.

if you deposit £500 for the initial payment and then a pound for 2 years. thatll be £524 leaving you with a total whopping £530 in interest making a total of £6 pounds in a 2 year account. as you can see its not worth it.

sprouty76

jinkssick wrote:

if your planning on putting £1 in then you better leave it. They need an initial deposit of £500 then you can place the highest amount which is £250 to get the highest possible interest.

if you deposit £500 for the initial payment and then a pound for 2 years. thatll be £524 leaving you with a total whopping £530 in interest making a total of £6 pounds in a 2 year account. as you can see its not worth it.

I thought jimbow25 was talking about putting £1 in the current account just to satisfy the requirements, not in the associated regular saver account.

Zebedee69

Well im busy putting money into a Lloyds ISA, not the best interest rate in the world but hey its not March yet!!! Maybe when I max out my ISA il start putting into a Instant Saver Account.

dihesford

To open classic plus on line you have to deposit £100 each month not just £1 as Martin suggests but if you telephone they will open a basic current account for £1.

OllieLong

dihesford wrote:

To open classic plus on line you have to deposit £100 each month not just £1 as Martin suggests but if you telephone they will open a basic current account for £1.

I opened the Classic Plus account online just last month and I didn't need to deposit anything in there.

jonesMUFCforever

OllieLong wrote:

I opened the Classic Plus account online just last month and I didn't need to deposit anything in there.

The Classic plus pays you 4% gross interest but only in the months you deposit £1k in up to a balance of £5k.

charlie_cornwall

both my busband and i opened one of these accounts last summer and have been paying the maximum £250 in each month but, upon maturing last week with a £3000 balance in each, we were only paid £98 interest. i just can't seem to work out how they got to that figure, even calculating daily, as I was expecting at least double that!
can anyone advise why this is the case?

sloughflint

charlie_cornwall wrote: »

both my busband and i opened one of these accounts last summer and have been paying the maximum £250 in each month but, upon maturing last week with a £3000 balance in each, we were only paid £98 interest. i just can't seem to work out how they got to that figure, even calculating daily, as I was expecting at least double that!
can anyone advise why this is the case?

It's about right. Rough estimate:
250*6.5*0.08*0.8=£104
Liken the situation to a single £250 being saved for a total of 78 months ( 78 months is 78 twelfths of a year ie 6.5) then deduct tax at 20%.

Or try this

exel1966

charlie_cornwall wrote: »

both my busband and i opened one of these accounts last summer and have been paying the maximum £250 in each month but, upon maturing last week with a £3000 balance in each, we were only paid £98 interest. i just can't seem to work out how they got to that figure, even calculating daily, as I was expecting at least double that!
can anyone advise why this is the case?

The max you could have earnt would have been in the region of £185 Gross, just under £150 NET (which I earnt), BUT that would have been dependant on how you started your account and the timing of each monthly deposit. You obviously didn't deposit the max permissable of £750 in the first month, nor deposit your monthly payment in the first 4 days of the month.