Lloyds TSB 5% Monthly Saver

Biggles

These things are not prohibited, Adindas, as stated in several posts on this thread. Several of us have made 13 payments, most of us have changed our SO date, and quite a few pay from an account with another bank (as suggested by LTSB in their letter to me). All of that works fine.

I'm afraid Lloyds staff are no better than most other banks in repeating what other staff might say without checking their facts. Just go by the printed T&Cs.

jimbow25

I'm pleased to see this account is back at a respectable rate.

I've steered away from new regular savers completely since the rates all dropped during 2009. Each to their own, but for me 5% before tax is the minimum return I feel the admin hassle is worth - for a 1 year regular saver from a bank I don't normally use. So from having had 3 open this time last year with Barclays Lloyds and Halifax I now have none.

I've had 2 editions of this account before (June 2009 at 5% and early 2007 at 8% (for 2 years - happy days)) and both would allow deposits from outside Lloyds TSB and would also allow the date of deposit to be altered, regardless of what I was told in the branch/on the phone upon applying. The second time they insisted on setting up a standing order from my dormant current account - which I cancelled the next day and replaced with one from my non-LTSB current account.

I notice the T&Cs seem to require at least £25 every month now - in the past you could cancel the S/O if you wanted to just leave the balance to earn interest (this seems more like the way the Halifax product works, which does require a deposit every month! But Halifax's wasn't instant access which this still is). It's academic really - you have to pay in £25 but you could just take it straight out again...

dazeruk

kemo_2002 wrote: »

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

To keep it simple

The difference in interest rates is 1%.

Over a year you make 12 payments of £250.
Account balance at the end would be £3,000.
The average balance would be £1,500.

You would therefore make 1% of £1,500 more interest by transferring the £250 into the monthly saver from your Vantage.

That's £15.

DebtKiller

Can I ask, as someone who doesn't have a LloydsTSB current account, is it worth opening one online now, then once it is all set up and "good to go", opening the RSA later NEXT month (and doing the funky 13 payments thing, of course!)...?

If so, will I be OK initially transferring a nominal amount into the current account and leaving it as it is (i.e. not touching it), seeing as its purpose is just so I can get the RSA?

Cheers for any answers!

dazeruk

kemo_2002 wrote: »

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.

If you open the account at the end of the month, you can get one £250 payment into the account just before the month end and (by changing the SO date) £250 at the beginning of the next month. Even though the payments aren't a month apart, they are in different calendar months which is allowed under the T&Cs. This means you get £500 earning the 5% for a whole year rather than £250.

kemo_2002

is there a best time to open the account to maximise interest?

sorry just read post above, am i best to wait till next month now then

oldfella

This means you get £500 earning the 5% for a whole year rather than £250.

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I dont think this is what is happening
if you put £250 in on 1st October you earn £1.04 interest for that month
if you put £250 in at the end of October, you earn nothing in October, but in exchange you earn 5% interest on £3250 for October 2011 - thats £13.54. Less the £1.04 you lost, means the gain is £12.50.

dazeruk

oldfella wrote: »

This means you get £500 earning the 5% for a whole year rather than £250.

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I dont think this is what is happening
if you put £250 in on 1st October you earn £1.04 interest for that month
if you put £250 in at the end of October, you earn nothing in October, but in exchange you earn 5% interest on £3250 for October 2011 - thats £13.54. Less the £1.04 you lost, means the gain is £12.50.

The 5% is fixed for a year from account opening. You don't open the account at the start of a month and then wait till the end to make the first payment. You open the account at the end of a month, making the first payment. Then switch the SO to the first of the next month. You then have two £250 payments close together (ie £500) earning interest till the account anniversary, which will 12 months later.

So you'll get a full 12 months at 5% on £500=£25.00 instead of 12 months on £250 which is £12.50. So £12.50 more interest.

In your example above you wouldn't get any interest for October 2011 because the account would close on 30 September 2011.

psychic_teabag

kemo_2002 wrote: »

is there a best time to open the account to maximise interest?

sorry just read post above, am i best to wait till next month now then

You would risk the account being withdrawn (or the rate dropping) before you apply.

jimbow25

psychic_teabag wrote: »

You would risk the account being withdrawn (or the rate dropping) before you apply.

This is true though they've never withdrawn/significantly dropped the rate on one of these within 1 month.

To the original poster - There's nothing to stop you running an account with £1 in just to get the monthly saver. I've had a Lloyds TSB Classic current account for over 3 years just to allow me to open and use their monthly savers. Most of the time it only has £1 in.