Lloyds TSB 5% Monthly Saver

Baldur

Funkyfreddy wrote: »

Just one additonal query if I may - I know internal standing orders between LLoyds current accounts are instant - or at least same day but does the same apply for internal standing orders from a LLoyds current account to a savings account ?

My first SO was set up for today's date and, when I checked at around 02:30, had been credited to my Monthly Saver account.

Westy

Guys, i WILL double check at work tomorrow for you, buuuuuut

We have asked about the 13 payment loophole and according to practically everyone at work it will allow 12 payments ONLY, regardless of how you alter the S/O from your account. Your 1st payment counts as your 1st Standing Order, if you change the 2nd S/O to an early date the month after, that is your 2nd and so on... It will finish in the month you started the year before.

The max you can save is £3000 over the year which is 12x £250. You are right in saying the 2 S/O's so close together WILL earn you good interest, but you cannot squeeze in the extra payment. Like i said, i'll double check and get back to you guys

As for the credit checks? This is just to ensure your address has not been subject to fraud or money laundering investigations that you would not otherwise know about It appears heavy going but FSA rules mean we HAVE to do it otherwise the whole account opening would be against FSA guidelines

Hope this helps

firsttimestudent

Westy wrote: »

As for the credit checks? This is just to ensure your address has not been subject to fraud or money laundering investigations that you would not otherwise know about It appears heavy going but FSA rules mean we HAVE to do it otherwise the whole account opening would be against FSA guidelines

Welcome to MSE Westy!

Last year when I opened Lloyd's Monthly Saver, I did query what she meant by a credit check and she clarified that it really was a soft search (unrecorded/identity check) which shouldn't leave a footprint on your credit report.

I believe that should be the case isn't it?

dazeruk

Westy wrote: »

We have asked about the 13 payment loophole and according to practically everyone at work it will allow 12 payments ONLY, regardless of how you alter the S/O from your account. Your 1st payment counts as your 1st Standing Order, if you change the 2nd S/O to an early date the month after, that is your 2nd and so on... It will finish in the month you started the year before.

The max you can save is £3000 over the year which is 12x £250. You are right in saying the 2 S/O's so close together WILL earn you good interest, but you cannot squeeze in the extra payment. Like i said, i'll double check and get back to you guys

I'm sure you're wrong.

The T&Cs state that the interest rate is fixed for one year from the date of account opening. They also state that payment is once a calendar month. So opening the account and making the first payment late in the first month, then changing the SO to the start of the next month, 13 payments within that fixed year look acceptable under the T&Cs.

I can't see anything different from the terms of the previous monthly saver and I managed to get 13 into that. I also had a regular with Barclays which explicitly stated that only 12 payments would be accepted into the account. The Lloyds account has no such condition.

Funkyfreddy

Baldur wrote: »

My first SO was set up for today's date and, when I checked at around 02:30, had been credited to my Monthly Saver account.

Thanks Baldur,

FF

Biggles

dazeruk wrote: »

I can't see anything different from the terms of the previous monthly saver and I managed to get 13 into that. I also had a regular with Barclays which explicitly stated that only 12 payments would be accepted into the account. The Lloyds account has no such condition.

Correct, it's not a problem.

1st payment at end Oct
2nd-13th payments at beginning of Nov 10 - beg Oct 11

As per terms & conditions. There is no 'maximum of £3,000' or any such condition.

Baldur

Biggles wrote: »

1st payment at end Oct
2nd-13th payments at beginning of Nov 10 - beg Oct 11

As per terms & conditions. There is no 'maximum of £3,000' or any such condition.

Hardly worth bothering for the £0.85 net interest that the 13th payment of £250 would earn (at best, in a 31 day month).

dazeruk

Baldur wrote: »

Hardly worth bothering for the £0.85 net interest that the 13th payment of £250 would earn (at best, in a 31 day month).

It's not really to get 13 payments into the account, it's to get 12 months interest on £500 rather than £250. Which by my reckoning is an extra £12.50

Baldur

dazeruk wrote: »

It's not really to get 13 payments into the account, it's to get 12 months interest on £500 rather than £250. Which by my reckoning is an extra £12.50

For deposits 1 & 2 agreed - SO 13 is superfluous, earning only £0.85 net at best.

dazeruk

Went in branch to open my account today.

After opening the account the manager asked what date I wanted for the SO. I asked if it could be made the following day.

She suggested making the first payment immediately and then set up a SO for 12 monthly payments starting on the 1 November.

Pleased she saved me the trouble of having to changing the standing order date.