Random question re. Lloyds TSB Vantage

hedgehopper_2

I have a LTSB vantage account and think it's the business; much better interest rate than on my savings account, and really gives me an incentive not to over-spend.

But I'm curious as to how the accounts benefit Lloyds: the main impact I see them having is that people will use current accounts instead of savings. Why is that something they want to encourage? Is it because a lot of people have savings accounts with other banks perhaps, and will ditch those in favour of these added value accounts?

I'm just curious really - it seems odd that so many 'good' savings accounts out there still have worse rates, and a no-brainer that people would not want to stick with them. Or am I missing something obvious?

jonesMUFCforever

IMO a loss leader to entice you in and gives them a chance to cross sell other services to you.