Lloyds TSB 5% Monthly Saver

adindas

I am sure whethet this is a correct way of doing that, as the payment shall be made by SO not cash or FP/BACS.

But if it is the Lloyds TSB bank personal has mentioned that, it shall be fine I believe.

ADINDAS

dazeruk wrote: »

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.

dazeruk

adindas wrote: »

I am sure whethet this is a correct way of doing that, as the payment shall be made by SO not cash or FP/BACS.

But if it is the Lloyds TSB bank personal has mentioned that, it shall be fine I believe.

ADINDAS

It was the manager that suggested doing it this way, there was no prompt by me at all. I was happy with the SO being made for the following day.

Hopefully the bank records will show that this payment was made by the manager not by me.

At the moment the monthly saver is showing the deposit as arriving.

I'll definitely keep a close eye on it.

yorkiebar

I've had 13 payments into one of these regular savings accounts with LTSB before.

Biggles

Baldur wrote: »

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

It's not so much exactly how much it earns, the question is: If it takes me no extra effort and costs me nothing to arrange, is that £250 better off in my current account or my monthly saver?

If it's not worth it, then when do you stop bothering? Do you stop at 11 payments, the 12th only being worth £1.70 or so net? Etc etc.

And multiply that principle by the other 10 monthly savers I've had in the past year.....

Baldur

Biggles wrote: »

It's not so much exactly how much it earns, the question is: If it takes me no extra effort and costs me nothing to arrange, is that £250 better off in my current account or my monthly saver?

That depends on your current account and balance - if a Vantage Account, with a £5-£7k balance, like mine, your 13th £250 will earn a massive 17p net difference.....

If it's not worth it, then when do you stop bothering? Do you stop at 11 payments, the 12th only being worth £1.70 or so net? Etc etc.

If you stop at 11, you are failing to meet the terms of the account, which requires £25 to £250 per month, so a spurious question.

And multiply that principle by the other 10 monthly savers I've had in the past year.....

Hopefully, some of them have permitted a more significant monthly deposit for the 5%, such as the £500 permitted by those that I've had over the past year, with providers such as Halifax & Principality.

Funkyfreddy

Funkyfreddy wrote: »

Mmmm...I spoke to a couple of people on the phone before opening mine and all said it had to come from a Lloyds Current account and that is how they had been "briefed".

One did go and speak to a senior colleage who apparanty suggested she said was aware of others asking similar questions and that those responsible for the T&C's had been informed and to expect a change to the effect it must come from a Lloyds Current account. Meanwhile if the T&C you receive with your account details in the mail don't specify that you would get 5% regardless of where SO originated.

Fact or Fiction...??

Nothing more than a quick follow up - doumentation from LLoyds received in the post this morning and as previously mentioned by Biggles the covering letter [still] clearly states: "If you asked us to set up a monthly standing order, this will be completed for you. If you are setting up a standing order with another bank, please use the above account details and make sure the first standing order is due to reach your new account within the next 30 days."

So no apparant change so far.

FF

kemo_2002

hi guys, im looking for a bit of advice, ive got £14k in 2 vantagage acc, and £1k waiting to go into a 3rd (i would then split 15k between 3 vantage accounts)

I currently save £500£600 per month at the moment which is being fed into the vantages

i dont pay tax but im not sure on the figures or how much i would gain by opening a monthly saver to drip in 250 of the 500 i save. Or would i be better of throwing it all in my vantage accounts.

im not great with the sums - thanks

xrjtg

1% extra interest on around £1500 is about £15. As there are no downsides, you might as well open a monthly saver: that also gives you a bit more headroom in the main Vantage accounts if you can save more than you thought this year.

kemo_2002

can you do them online now? also would i benefit setting one up now, as i doubt i would be able to get the first 250 in untill maybe the 3rd? ive just read about people putting in 250 at end of month and 250 at begining so bt comfused.

adindas

I fully agree with this there is nothing in the T&C explicitily mention:
- You can not make 13 payments.
- You can not change the date of SO.
- Maximum limit of £3000 to be put in this RSA

But i got confused when Westy (Lloyds TSB employees) mentioned that it is not allowed. If he could clarify which T&C prohibit people or whioch section on the T&C has been breached by putting 13 payments during 1 year period. We could learn it from there.

ADINDAS

dazeruk wrote: »

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.