Lloyds TSB instant access monthly saver 8%

LittleVoice

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?

Are you looking at £3K at 8% for a year and then deducting 20% tax?

If so you are forgetting that the £3K wasn't in the account every day of the year. Work out the interest on the actual balance in your account on the days through the year and you will find that you have been paid the correct amount.

I can't say that it is exactly right because it will vary slightly depending on when in the month you made payments but it is roughly right.

darkelf

I am with llyods also and like the idea of this.......is this online yet or not out???
sounds good,

downs523

this thread is 2 yrs old, doubt they still do it! lol

darkelf

yeah....they dont......the savings account is down to 4.5/5% now...

Milarky

darkelf wrote: »

I am with Lloyds also and like the idea of this.......is this online yet or not out???
sounds good,

As above, this account is no longer available at the 8% rate (or anything near it) from Lloyds but Barclays has a very similar account in their Monthly Saver. This pays 7.5% for one year and the only 'snare' feature (I can see) compared to the Lloyds account is that a much lower rate is paid in the month that a withdrawal is made in the first 12 months

Jonbvn

charlie_cornwall wrote: »

as I was expecting at least double that!
can anyone advise why this is the case?

Remember that the 3k was not in the account for the full year. If you average it out over the year, the average balance for the account was approximately half of the 3k. Assuming you expected interest on the full 3k for the whole year, the interest is actually half what you expected.

A good demonstration of why RS are not quite as good as they first appear.

exel1966

Jonbvn wrote: »

A good demonstration of why RS are not quite as good as they first appear.

They're as good as they appear, providing you understand how they work and that's where the problem lies.

Many people just don't realise how they work, whether that be from ignorance OR in some cases being misinformed by the CSA's at the banks themselves.

sloughflint

It was a particularly good product since it ran for 2 years. So after year 1 all the funds pre year 1 ( £3000 or £3750 from memory was the max)earned 8% as well as another '£250 for 78 months '

Innys

sloughflint wrote: »

It was a particularly good product since it ran for 2 years. So after year 1 all the funds pre year 1 ( £3000 or £3750 from memory was the max)earned 8% as well as another '£250 for 78 months '

Yup - mine matures on the 12th of next month and I'm looking forward to cashing it in.

As with all things (not just Financial Products), the potential buyer needs to understand what is being offered (in this case, RSs) before they decide to part with their money.

Yes, it is true that CSAs could so with better training on RSs, but there is also an onus on the customer to do some research first.