Lloyds TSB 5% Interest

Jake'sGran

JapanG wrote: »

I went in to a Lloyds branch today to open a Monthly Saver account. The manager informed me that they have just been notified that the offer will finish on Friday 10th December, and the rate will drop from the current 5% (gross) to 2%.
If you are considering opening one of these account you may wish to do it quickly, as it won't be worth it after Friday.

What is the point of a monthly saver paying 2%. Surely this would produce interest less than 1% at the end of twelve months. I don't like monthly savers as too many people take them out not understanding the way they work. Much better to use a fixed rate bond although I appreciate that the full sum has to be deposited up front.

Yorkie1

Yes, you'd get better returns on an equivalent % by putting the whole amount into a fixed rate bond up front, for sure, but not everyone has that amount of cash up front, and this monthly saver allows instant access withdrawals with no penalties.

I guess it's just a different product for people with different saving criteria.

At 5% it's a pretty good deal.

anna42hmr

i agree it is a good deal for the type of account it is and as long as people understand how it works on the interest (ie realise that as the money is in gradually you dont get a as much interest as if the amount had been in one lump sum), then i see no problems with it.

i think it is also a good way to help people to get used to putting aside some money every month to build up a savings pot.

Steve_xx

anna42hmr wrote: »

i agree it is a good deal for the type of account it is and as long as people understand how it works on the interest (ie realise that as the money is in gradually you dont get a as much interest as if the amount had been in one lump sum), then i see no problems with it.

That comment isn't strictly true. You do get as much interest, ie you get 5% no matter when you deposit it, pro rata to the amount of days you have the money in the account. The fact that it's not all in the account for exactly 12 months is neither here nor there.

smeagold

What a whole 5%? fantastic. I really wish I'd put my money in that rather than gold, thats been giving 23% yoy returns for the last 10 years. I'm really missing out there aint I? where do I sign up?

choc_mouse

This account is no longer accepting at 5% (down to 2%) as it was a limited offer. I'm glad I just opened one last week!

YorkshireBoy

Steve_xx wrote: »

That comment isn't strictly true. You do get as much interest, ie you get 5% no matter when you deposit it, pro rata to the amount of days you have the money in the account. The fact that it's not all in the account for exactly 12 months is neither here nor there.

It's true in the context, and wording, used.

Anna was talking about interest, whereas you are talking about interest rate.

anna42hmr

choc_mouse wrote: »

This account is no longer accepting at 5% (down to 2%) as it was a limited offer. I'm glad I just opened one last week!

me to, opened mine on thursday with first standing order due in tomorrow

hunsbury0

anna42hmr wrote: »

me to, opened mine on thursday with first standing order due in tomorrow

I rang them today & was told that I had missed the boat.
The rate they offered me was 2% !!!!!!
Who is currently the highest payer for regular savings?

Stochasticity

hunsbury0 wrote: »

I rang them today & was told that I had missed the boat.
The rate they offered me was 2% !!!!!!
Who is currently the highest payer for regular savings?

First Direct, 8% gross for 1 year, £25-300 per month, current account holders only, withdrawals by account closure only.

http://www2.firstdirect.com/1/2/savings/regular-saver-account;jsessionid=0000Yi4zelo9j2htnwVYVMjzktq:11qkrclbj