Lloyds TSB 5% Monthly Saver

opinions4u

captain_barclay wrote: »

Beware the Lloyds Monthly Saver only pays 5% on the first deposit . Each monthly subsequent deposit is not compounded or added to what is already in the account.

All money in the account earns interest at 5% AER until the account matures. If the money is in the account for 6 months, it will earn 2.5%, but 2.5% for 6 months is 5% AER. AER means annual equivilant rate and is the way banks are legally required to display their rates.

Note that the following and subsequent deposits have interest added to each one in isolation and for the term left until the original term runs its course.

And if you saved in to an easy access account on a month by month basis it would work the same way. Except with less interest.

So with deposits not added together and a falling time of each subsequent depost you dont end up with much. Certainly not 5%.BEWARE/ I was on the phone for long time to find all this out. I told Lloyds that their ads are misleading.

Their ads display rates exactly as they are legally required to. Their website even states "£250 saved a month = £81.25 Gross interest after 12 months." and in no way tries to imply that they will pay £150 on £3,000. If you're really not happy they will even return the funds to you: "COOLING OFF: If you are not happy with your choice of account or service, you can cancel it within 30 days of opening the account or taking the service. We will then help you to move to another account we offer or will return your money to you with any interest you have earned."

So tell me, what's the best thing to do with £250 a month? Leave it sat in your bank account earning nothing? Stick it in to an easy access account paying 2%? Or stick it in to a monthly saver account paying 5%? Your call.

Nine_Lives

Do you know what the business hours are for the application phone number?

I meant to help my mum open this account today but forgot & i finish work around 6pm on weekdays. She doesn't want to apply without me being there & the phone on loudspeaker as she's bothered about applying for something she doesn't want to.

gt94sss2

K_P83 wrote: »

Do you know what the business hours are for the application phone number?

From their website - 0800 056 7292:

Lines are open Monday to Friday 7am to 10pm and 8am to 6pm at weekends.

Regards
Sunil

anna42hmr

just phoned tonight to open mine and it was really quick, got straight through and was only on the phone for 7 minutes and all done (i am an existing customer so dont know if that speeds it up.

anna42hmr

just a quick question, how long did it take to show up on peoples internet banking, they advised me on thursday evening would be 24 hours, so should have been on last night, but gone on this morning and still not showing??

bubbles0169

i cant remember exactly but mine took longer than that

Jake'sGran

K_P83 wrote: »

Do you know what the business hours are for the application phone number?

I meant to help my mum open this account today but forgot & i finish work around 6pm on weekdays. She doesn't want to apply without me being there & the phone on loudspeaker as she's bothered about applying for something she doesn't want to.

Have you read and understood the post above by opinions4u ?

You need to make sure your Mum understands how the interest is calculated.

anna42hmr

bubbles0169 wrote: »

i cant remember exactly but mine took longer than that

just gone on to my account now and its showing up must have updated this afternoon

anna42hmr

hi all

how long did it take for you to get the paperwork in the post if you applied over the phone, as i opened on thursday last week (9th) and showed up on my online banking on 11th but not had the postal confirmation, i am wondering how long should leave it before i chase it up.

also has any one had clarification if 13 payments are ok for this account, as doesnt seem to say you cant or that there is a maximum balence that you can have? but want to be sure. I have had a lloyds monthly saver a year or two ago but cant remember if i managed to squeeze one in and cant locate the paperwork.

bubbles0169

my covering letter is dated 9/11/10 so two working days later, give it a couple more days to get through the post then it would have been delivered to me. are you in a bad weather area? are you still receiving post? id give it till tuesday until you phone
my info also states one payment per 'calender month' so i dont think you can squeeze another payment in