Lloyds TSB Vantage - Multiple accounts

pawlala

Can anyone help figure this out?

At the beginning of July I made approx £53 interest through my vantage accounts.
then add £2000 saving into a vantage. transfer £1000 through all, no problem.
At the beginning of August I made approx £62 interest through my vantage accounts.
then add another £2000 saving into a vantage. Again, transferring £1000 through all.
At the beginning of September I made 40p more interest than last month, despite there being a couple of thousand more in.

Have the vantage rates changed or have Lloyds short changed me?

noh

pawlala wrote: »

Can anyone help figure this out?

At the beginning of July I made approx £53 interest through my vantage accounts.
then add £2000 saving into a vantage. transfer £1000 through all, no problem.
At the beginning of August I made approx £62 interest through my vantage accounts.
then add another £2000 saving into a vantage. Again, transferring £1000 through all.
At the beginning of September I made 40p more interest than last month, despite there being a couple of thousand more in.

Have the vantage rates changed or have Lloyds short changed me?

Neither.

From http://www.lloydstsb.com/current_accounts/vantage_ts_and_cs.asp

For each month that you meet the Vantage conditions we will work out interest on a daily basis at the relevant Vantage interest rate from the second working day of that month and add it to your account at the end of the first working day of the next month.

The interest you received in August was for a period of 32 days.
The interest you received in September was for 30 days.

Eco_Miser

noh wrote: »

Neither.

From http://www.lloydstsb.com/current_accounts/vantage_ts_and_cs.asp


The interest you received in August was for a period of 32 days.
The interest you received in September was for 30 days.

That doesn't explain why more interest was paid for a shorter month. Nor does it explain why two thousand pounds more capital generated only 40p more interest.

@pawlala Have you now got more than £7000 in 1 account? if so, you're only getting 0.1% on the excess.
OR, did you add the £2000 near the end of August?

PParka

Ok.. I think I understand the idea of Multiple Vantage accounts, but just to be 100% sure......

I open 3 accounts, lets call them A, B and C.
I put £7000 in each account, so I earn 4% interest.
Each month I transfer £1000 from account A to B to C and back to A again.

Now for the questions:
Can I do all the transfers on the same day?
Can they be set up to automatically happen via online banking? (just so I don't forget to move £1k each month)


It just seems too easy. I keep thinking there must be a catch somewhere!

Thanks
Parka

pawlala

Miser, No one account has more than £7000 in it, and there are three full ones.

The £2000 goes into an account with more than £5000 in it at the start of each month as part of salary, so for the following month the account benefits from having 2k more in it for the full month period.

If I need to juggle account figures so none are below 5K and none are above 7K then I do that also.

noh

Eco_Miser wrote: »

That doesn't explain why more interest was paid for a shorter month. Nor does it explain why two thousand pounds more capital generated only 40p more interest.

@pawlala Have you now got more than £7000 in 1 account? if so, you're only getting 0.1% on the excess.
OR, did you add the £2000 near the end of August?

He received more interest (40p) in the shorter period because he had £2000 more on deposit than he did in the longer period.
It is only 40p more because it was a 30 day period compared with the previous period which was 32 days.

pawlala

noh wrote: »

The interest you received in August was for a period of 32 days.
The interest you received in September was for 30 days.

I don't understand? August has 31 days and so does July. Where does 30 and 32 come from?

slinga

PParka wrote: »

Ok.. I think I understand the idea of Multiple Vantage accounts, but just to be 100% sure......

I open 3 accounts, lets call them A, B and C.
I put £7000 in each account, so I earn 4% interest.
Each month I transfer £1000 from account A to B to C and back to A again.

Now for the questions:
Can I do all the transfers on the same day?
Can they be set up to automatically happen via online banking? (just so I don't forget to move £1k each month)


It just seems too easy. I keep thinking there must be a catch somewhere!

Thanks
Parka

I'd like some answers to these questions as well, please.

Frogletina

PParka wrote: »

Ok.. I think I understand the idea of Multiple Vantage accounts, but just to be 100% sure......

I open 3 accounts, lets call them A, B and C.
I put £7000 in each account, so I earn 4% interest.
Each month I transfer £1000 from account A to B to C and back to A again.

Now for the questions:
Can I do all the transfers on the same day?
Can they be set up to automatically happen via online banking? (just so I don't forget to move £1k each month)


It just seems too easy. I keep thinking there must be a catch somewhere!

Thanks
Parka

No catch - you can set up the transfers just as you have described via online banking for the same day.

KingL

I've only just opened some myself, but the questions have been asked and answered several times on the various Advantage threads.

Apparently the answers are yes and yes (set up standing orders. Aim for the middle of the month so as to not collide with the month start/end (which is always in the first week of the month). Note that you will also want to login/SO to remove the interest earned once a month as any balance over £7k gets zero interest.

I haven't tried the SO thing yet, but certainly doing it manually takes about a minute (there is a "quick transfer" section on the website where you just select from a pull-down the source and destination accounts and the amount and bingo, the transfers are done instantaneously).