Lloyds Vantage account

rb10

Malti wrote: »

Sorry if this sounds really stupid but how can you earn interest on the Lloyds TSB Vantage account if you transfer the money in and then straight out to another account? Doesn't it have to sit in the account to earn interest?

If you are just using it as a savings account, and keep a constant balance of £7000 in there all the time, then this applies.

Anything over £7000 earns only 0.1% (so if you had £8000 in the account, you'd get 4% on £7000 and 0.1% on the other £1000), so you don't want to leave this extra £1000 in there for any length of time. Hence, if you just transfer it in and straight out again, you never have a balance above £7000 (for calculating the interest).

Malti

Sorry, just realised you've got funds in both TSB vantage accounts and are bouncing £1k a month - just me being thick!

Trek

rb10 wrote: »

If you are just using it as a savings account, and keep a constant balance of £7000 in there all the time, then this applies.

Anything over £7000 earns only 0.1% (so if you had £8000 in the account, you'd get 4% on £7000 and 0.1% on the other £1000), so you don't want to leave this extra £1000 in there for any length of time. Hence, if you just transfer it in and straight out again, you never have a balance above £7000 (for calculating the interest).

If i put £7000 in then via fast payment transfer £1,000 out of the account within minutes transfer the £1000 back in would i get 4% on £6,000 or £7,000? Reason im asking because i need to transfer £1000 from the vantage account to the halifax reward account then back into the vantage.

Rollinghome

Trek wrote: »

If i put £7000 in then via fast payment transfer £1,000 out of the account within minutes transfer the £1000 back in would i get 4% on £6,000 or £7,000? Reason im asking because i need to transfer £1000 from the vantage account to the halifax reward account then back into the vantage.

I'd guess it would be on the higher balance if you start and end the day with £7K. But the interest on £1K at 4% for a day less tax is 9p, so I wouldn't lose sleep over it.

D1zzy

£7000 - Its the end of day balance that counts - not what happens in between

DesertFlyer

Sorry if this has been covered elsewhere already. Is the £1000 each calendar month? Or within month multiples from opening date? Or something else obscure...

I just wonder as I opened an account in late Jan with a >£1k deposit around the 25th Jan and then another >£1k deposit around 2nd Feb and I don't know if I need make another deposit in the next few days - i.e. more than 1 month from opening date (as both the first deposits were within the first month) - or if it is by calendar month in which case I can deposit on 1st March?

Thanks in advance.

MoodyBlues

With the Lloyds Vantage how long do you need to have the 1k in the account to benefit from the 4% interest? I have an old Lloyds account that I could probably upgrade but was wondering if it was worth it.

Baldur

MoodyBlues wrote: »

With the Lloyds Vantage how long do you need to have the 1k in the account to benefit from the 4% interest? I have an old Lloyds account that I could probably upgrade but was wondering if it was worth it.

A few seconds - you can FP it in and FP it straight back out - the qualifying balance of £5 to 7k, of course, needs to remain in the account in order to attract that rate of interest.

MoodyBlues

Thanks for the info Baldur. Say I had £100 in the account, how much monthly interest would that be?

scottishblondie

MoodyBlues wrote: »

Thanks for the info Baldur. Say I had £100 in the account, how much monthly interest would that be?

If you only had £100 in the account you would only be getting 0.1% interest, so not very much. Because the interest rate is tiered based on your balance you need between £5000 and £7000 to get 4%. Info on the interest rates is here.