Lloyds TSB instant access monthly saver 8%

humfer

Has anyone worked out what the benefit is vs the same cash in say a ING account 4.5%. I have done some pretty rough calculations and reckon your generate any extra £200 (rough) after the 2 years with this Lloyds acc than if the money was left in the ING. Sure there are some smarter people on this thread who can work it out properly

Dagobert

For detailed calculations, see when a regular saver is worth it:. Note, that this calculation ignores tax.

As described in this post, you have to take into consideration the days lost through BACS transfer. Best case scenario would be:

ext. a/c -> TSB current a/c: 2 days
TSB current a/c -> TSB monthly a/c: 0 days
TSB monthly a/c -> TSB current a/c: 0 days
TSB current a/c -> ext. a/c: 2 days
_______
4 days

Making these assumptions, you'd gain £55 in year 1 compared to leaving the money in a 4.5% interest a/c.

On the same basis, you will gain £55 in year 2.

Additionally, if you open the account at the end of the month and fund it with £750 immediately, you will gain an extra £26 in year 1 and a further £26 on this amount in year 2.

In year 2, the account will also contain 12 x £250 = £3000; this will gain an additional £105.

By gain I mean extra gross interest earned compared to keeping the money in a 4.5% interest a/c.

The above is only a very rough calculation ignoring compound interest. All in all, you would roughly gain a total £270 before tax.

grumbler

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)

Kazza242

Right, my Lloyds TSB monthly saver has been opened with £500 and another £250 will go in on the 30th. I should then, hopefully, be able to change my SO for June, so that it goes in not long after the 1st.

I was the first customer in to open one at my local branch and then another two customers came in to open it for themselves also. The personal bankers were running from one appointment room to another to help one another! .

I think that this is the best high interest regular saver currently available, as it's quite flexible when compared to other regular savers and has the added bonus of running for two years, instead of the usual one.

[Deleted User]

Do you definitely need a Lloyds current account before you can apply for this monthly saver account, or can you have a stand-alone account funded externally?

It's just that I am surprised at how many of you seem to have had a pre-existing Lloyds account. Or have you opened both new accounts at once?

lipidicman

You need a lloyds account and 'you must operate it as your main account' whatever that means. For me this is no problem. The lloyds current account is great and they have 'real-time' online banking. I have never considered moving anywhere else (except for opening bonuses/needing and account for a saver and all of these have fallen short in some way)

I agree this account is one of the best, the flexibility and the two year period is great. However I did notice that the interest rate is not fixed in any way!

Kazza242

Deleted_User wrote:

Do you definitely need a Lloyds current account before you can apply for this monthly saver account, or can you have a stand-alone account funded externally?

It's just that I am surprised at how many of you seem to have had a pre-existing Lloyds account. Or have you opened both new accounts at once?

You do need to either already have a Lloyds TSB current account, or if you don't, you'll need to open one at the same time as the monthly saver.

I was not an existing Lloyds customer, so I made an appointment at my local branch to open both the current account and the monthly saver. This was all done pretty quickly today. I brought in with me the £500 and the first £250 SO payment in cash, which was deposited over the counter by the personal banker straight after my accounts were opened.

Although the Lloyds current account doesn't require you to switch your salary to them, I intend to cycle money in and then out every month. This should avoid any potential problems. I don't want them to think that I'm not using the current account enough, resulting in them prematurely converting my monthly saver into a guaranteed tracker.

Kazza242

lipidicman wrote:

I agree this account is one of the best, the flexibility and the two year period is great. However I did notice that the interest rate is not fixed in any way!

Yes, the interest rate is fixed:D . If you go to the monthly saver webpage, you'll see that it says:

"Receive unlimited instant access to your savings with no penalties and enjoy a fixed interest rate of 8.00% AER*/gross for two years".

http://www.lloydstsb.com/savings/monthly_saver.asp

Hobo_2

lipidicman wrote:

You need a lloyds account and 'you must operate it as your main account' whatever that means. For me this is no problem. The lloyds current account is great and they have 'real-time' online banking. I have never considered moving anywhere else (except for opening bonuses/needing and account for a saver and all of these have fallen short in some way)

I agree this account is one of the best, the flexibility and the two year period is great. However I did notice that the interest rate is not fixed in any way!

Check Lloyds website, under "Features & Benefits"

"a highly competitive annual rate, Fixed for 2 years"

lipidicman

Ok guys, that does seem pretty clear. However, I was reading the terms and there was a paragraph on being able to changes rates to bring them in line with the market. I dont have it here, so I will get back to you