Lloyds TSB 5% Monthly Saver

MarkFromCornwall

Yorkie1 wrote: »

Is this correct or am I way off beam?

As a rough estimate, you are losing 5% of £200 for a year, that's £10.

Of course, you can save that somewhere else, say at 3% interest, and get £6, so you are only really going to be down about £4, so if they are giving you £5 as a goodwill gesture that's not unreasonable.

psychic_teabag

The first deposit earns interest for a whole year, so the loss of interest should just be a straightforward 5% on £225 for one year = £11.25 before tax, which agrees with your sum. (Basically, all the other months contributions in your sum cancel out.)

In practise you do have an extra £225 which you can put somewhere else - you can easily get 2.5%, say, reducing your loss to around £6.

You can't just close the account and reopen a new one since T&C prohibit a new one within 12 months of opening one. However, if there's a cancellation period for the account, that may not apply.

If you do decide to keep the account, you can increase your interest slighly by adjusting the standing order to pay subsequent installments near the start of the month, rather than waiting for the anniversary of account opening. And (unless they've changed the T&C) you can actually squeeze in a 13th payment at the start of next December, though the extra interest is a bit marginal.

Yorkie1

Many thanks, all. Glad to hear that my sums were correct and the chap on the phone wasn't right.

I won't be closing the account, it's too good a rate of interest for the rest of the deposits, and I've already moved the SO date forward from the opening date to earlier in the month so we'll see if we can squeeze in a 13th deposit.

I've got to go into my branch to close the esaver which has just come to the end of its 12 month bonus period, so I might try to wangle the rest of the interest out of them anyway (being a good MSE'r of course!).

Cheers one and all.

ziggycj

Sorry too bump, but does anyone know if this offers still on? I cant find any links to it and it said "limited offer"?

Thanks

anna42hmr

ziggycj wrote: »

Sorry too bump, but does anyone know if this offers still on? I cant find any links to it and it said "limited offer"?

Thanks

the monthly saver account is still available but no longer at 5% its now 2%
http://www.lloydstsb.com/savings/monthly_saver.asp

opinions4u

ziggycj wrote: »

Sorry too bump, but does anyone know if this offers still on? I cant find any links to it and it said "limited offer"?

Thanks

Rate back down to 2% now. Offer over.

First Direct's 8% may be the place to turn.

mrsw

For people who opened mid October, this account now reaching maturity. So did anyone manage to get 13 payments into the account and earn the extra interest?

ST£V£

mrsw wrote: »

For people who opened mid October, this account now reaching maturity. So did anyone manage to get 13 payments into the account and earn the extra interest?

Yes. Money now safely in Classic Vantage.
Steve

MiserlyMartin

opinions4u wrote: »

Rate back down to 2% now. Offer over.

First Direct's 8% may be the place to turn.

I thought their current accounts had a monthly fee, thus wiping out the gain of this 'operation drip feed'.

opinions4u

MiserlyMartin wrote: »

I thought their current accounts had a monthly fee, thus wiping out the gain of this 'operation drip feed'.

You can avoid that fee by opening an easy access online account with them too - a £1 balance and job's a good 'un.