Lloyds TSB 5% Monthly Saver

Biggles

earthlover wrote: »

I don't want to have to transfer cash into the vantage accounts as this could affect my interest. I would prefer to pay the s/o through my other bank. Is that possible?

It is possible, but I see no reason why you need to.

You presently have to fund your Vantage a/c with £1,000pm to get the interest.

All you need do in future is fund it with £1,250 and set up a SO for £250 to the Monthly Saver for the same date. It will have no effect on your interest.

Paulee

Please help me, am I missing something here?

I open this 1 year monthly saver and put in £3000 over the term @ 5% & the money is drip fed into the account each month. Doesn't this average out to 5% on £1500 over the 1 year term (or 2.5% on £3000)? If so, why not leave the £3000 in a standard account paying 2.5%?

opinions4u

Paulee wrote: »

Please help me, am I missing something here?

I open this 1 year monthly saver and put in £3000 over the term @ 5% & the money is drip fed into the account each month. Doesn't this average out to 5% on £1500 over the 1 year term (or 2.5% on £3000)? If so, why not leave the £3000 in a standard account paying 2.5%?

Because it would be better to have £1500 in an account earning 5% and £1500 in an account earning 2.5%.

You would be getting an average rate of 3.75%.

Frogletina

Paulee wrote: »

Please help me, am I missing something here?

I open this 1 year monthly saver and put in £3000 over the term @ 5% & the money is drip fed into the account each month. Doesn't this average out to 5% on £1500 over the 1 year term (or 2.5% on £3000)? If so, why not leave the £3000 in a standard account paying 2.5%?

If the money is currently in an account earning 2.5% you will still get that interest on a declining amount over the 12 months in addition.

Using the calculator on Martin's site (assuming basic rate taxpayer)

TOTAL INTEREST EARNED: £93
£28 from the normal savings & £65 in the regular saver.

If you'd kept the money only in the normal savings account you'd have earned £60 in interest.

Rose_Crow

Phew glad I didn't miss this one. 5% and easy access - Reminded me of the good ol' days a few years ago. Halfway through setting mine up. We hit a slight problem as I moved house a few months ago, and the local branch of Lloyds balls'd up my change of address, so I went back down there today to get it corrected. Account should be set up tomorrow Have also email Mum about this as she also has a Lloyds current account. Thanks for letting us know about this one.

TOP_CAT

It looks like the banks are just starting to price in future higher interest rates.
Not much so far though.

Rose_Crow

Nice lady I spoke to yesterday called me back this morning, so the account's now set up 10/10 for Lloyds TSB customer service over the phone

opinions4u

TOP_CAT wrote: »

It looks like the banks are just starting to price in future higher interest rates.
Not much so far though.

No it doesn't.

It looks like they want to increase footfall in to branches and call volumes in to call centres.

This, although on its own it's a loss leader, it is a relatively cheap way to do things and factors in a range of cross-sales and new customer attraction implications that will probably make the campaign a profitable one in the long term.

It will have absolutely nothing to do with the interest rate outlook. Which is probably flat at the moment.

Newly_retired

I went into branch Monday and they said I could open it online. Not sure why I didn't persist, as of course I couldn't. So did it by phone yesterday- not yet showing up online.

MiserlyMartin

Frogletina wrote: »

If the money is currently in an account earning 2.5% you will still get that interest on a declining amount over the 12 months in addition.

Using the calculator on Martin's site (assuming basic rate taxpayer)

TOTAL INTEREST EARNED: £93
£28 from the normal savings & £65 in the regular saver.

If you'd kept the money only in the normal savings account you'd have earned £60 in interest.

All this extra hassle for an extra £33. But we have to do it to limit the damage from the insanely low base rate and savings rates that are lower than inflation! It really angers me that us prudent savers are paying the price for something they did not cause while the debt junkies continue to be rescued. The B of E do not care.

At the moment the whole economy is in a crazy state from policymakers desperate to keep the bubble going and stop market forces correcting. it will end in tears and they will prolong the pain.