Lloyds TSB 5% Monthly Saver

triplea35

All my spare cash at the moment is in Vantage accounts earning the max interest of 4%. Can someone better at maths than me tell me what the extra benefit would be if I dripfed the saver account from the Vantage account. I suppose a lot of us may be in a similar position.

Thanks in advance.

Correct me if I'm wrong but think I have worked this out now as £11.02net.

Still, an account for OH and myself, means £22.00 for the sake of a phonecall and setting up standing orders.

andypandy1

triplea35 wrote: »

All my spare at the moment is in Vanatge accounts earning the max interest of 4%. Can someone better at maths than me tell me what the extra benefit would be if I dripfed the saver account from the Vantage account. I suppose a lot of us may be in a similar position.

Thanks in advance.

Assuming you are a basic rate tax payer you will gain approx. £12 over the year by moving from vantage to RS. Calc: Average bal over the year in RS £1500 x 0.8% additional net interest.

triplea35

Thanks Andy, I suddenly realised to work it out the benefit was the 0.8% on a monthly deposit of £250. x 12months. On a savings calculator that shows £11.02.

simpleguy_blr

exel1966 wrote: »

Only just finished the last one back in August so a welcome addition to open up.

Remember to maximise interest gain, open and deposit the first £250 on the last business day of the month and follow up with another £250 on the first business day of the following month and thereafter.

Just to confirm does this mean to make the first payment on the 29th of this month and then make the next payment on the 1st of Nov?

Thanks

gt94sss2

steveksullivan wrote: »

Yep confirmed this when I opened mine earlier ...... have set up s/o for the 29th and will change it using online banking on 30th .......

While I can see why you may want to do this, given you've already opened the account, wouldn't you be better off putting in £250 now and then again on the 1st - given that the 5% runs from the date you open the account.. ?

Regards
Sunil

triplea35

Correct me if I'm wrong but I calculate that maximising the interest by making two deposits close to each other in seperate calender months will result in approx 16 pence extra interest.

adindas

Dear triplea35 and All members

But I am thinking here is that when we set up a SO it has got to be the same day each month.

We could only do on different date when we do FP by oursleves, which is not worthy given the time you and the benefit of it which is just a few penny ?? Unless there any other way to do that automatically using SO.

Also, I am probably wrong, but I remember some SO taking weekend, holidays into consideration. So put your SO by the end day of the month you are risking mispayment and your intrest rate will be falling significanly for the whole of your money.

Am I missing something here. I am also considering to put as suggested if there is convenience way of doing that and no risk of mispayment.

triplea35 wrote: »

Correct me if I'm wrong but I calculate that maximising the interest by making two deposits close to each other in seperate calender months will result in approx 16 pence extra interest.

johnmoney05

adindas wrote: »

Dear triplea35 and All members

But I am thinking here is that when we set up a SO it has got to be the same day each month.

We could only do on different date when we do FP by oursleves, which is not worthy given the time you and the benefit of it which is just a few penny ?? Unless there any other way to do that automatically using SO.

Also, I am probably wrong, but I remember some SO taking weekend, holidays into consideration. So put your SO by the end day of the month you are risking mispayment and your intrest rate will be falling significanly for the whole of your money.

Am I missing something here. I am also considering to put as suggested if there is convenience way of doing that and no risk of mispayment.

Dear. log in your internet banking. you can change the date of the SO.

adindas

Dear johnmoney05
That is my concern here if you still need to log in, it means you have to do it every months. It is not worthy given the time you need to spend and the benefit which is just a few pennies.

johnmoney05 wrote: »

Dear. log in your internet banking. you can change the date of the SO.

dazeruk

adindas wrote: »

Dear johnmoney05
That is my concern here if you still need to log in, it means you have to do it every months. It is not worthy given the time you need to spend and the benefit which is just a few pennies.

You only need to login once and change the day of the month of the standing order. All the following SO's will be on the new day.