Lloyds TSB - BACS payments

Dagobert

Years ago, TSB used to pay a further two days' interest on outgoing BACS payments (one-off and SO):

We'll still pay you interest on the Standing Order amount for the two days it takes the money to reach the other person's bank account.

As with the Standing Order cycle described above, we'll still pay interest for the two days between the money leaving your account and it reaching the other person's account.

Does anyone know whether this extra interest this still in place?

charlieboycat

It was certainly still in place (and working - I checked the interest calculation) last summer when I started opening Classic Vantage accounts.

All my recent transfers have gone via FP and it doesn't work for them!

Dagobert

Thanks for your info.

Is this specified in the T&Cs or anywhere else in writing?

charlieboycat

In writing in the "Classic Account - Welcome Aboard" booklet. Go to http://www.lloydstsb.com/legal/current_accounts_legal/classic_account_page.asp
and click on "Important information". A pdf document will open - go to page 18 and you will find (see third paragraph):

Internet and telephone payments
When you use our telephone or Internet banking
services to make a payment, it can take up to
four working days for the money to reach an
account at a different bank.

So if you set up the payment online on Monday
the money will leave your Lloyds TSB account
on Tuesday, and reach the other person’s bank
account on Thursday.

If you instruct us to make a payment via the
Internet, by phone or by standing order we will still
go on crediting you with the interest value of your
payment for the time it takes for the money to
leave your account and get to the other account.

Faster Payments
Since May 2008, certain payments made
through Internet and Telephone Banking may be
processed quicker than before, with payments
processed in hours rather than days. We will
advise you when you make a payment whether
this service is available to you.

Dagobert

Thank you very much for locating this for me!