how to use lloyds tsb with vantage?

Versus

Hi, i just changed my lloyds tsb classic account to vantage. However, I'm a newbie and have some questions regarding it. Please help answer it as I really appreciate the answer.

1) I only have a lloyds tsb classic account. I don't have other bank's account such as HSBC, santander, barclays etc. I don't have it except one lloyds tsb account. So the term and conditions to get the 4% is to maintain 5k-7k in the account and pay in 1k each month. So, is it ok if i just transfer my money from my easy saver to the classic vantage? does this count as paying 1k into the classic vantange and will i get the 4% interest?

2) I just opened a monthly saver 4 days ago and until today, it doesn't have any options to let me choose to transfer/ set up a standing order from my classic vantage to the monthly saver. I can choose classic vantage/easy saver/monthly saver from the 'which account to pay from' option. However, the monthly saver doesn't exists in the options of ' which account to pay to'. How can i pay to the monthly saver each month?

3) If i put in 5k into my vantage account i should be able to get 4%. however, when i transfer the money from the lloyds vantage account to other account n back to the vantage account, so the money goes from 5k to 4k n back to 5k. so when they pay me the interest for that month, i will get 4% interest or 3% interest? as my money inside the account is less than 5k for a few minutes for that month.

Really appreciate the answers given. Thanks.

apt

The answer to 1) is yes, and to 3) is 4% for every day your balance is £5,000. On 2) are you sure you want a Lloyds monthly saver as this interest rate would be only 2%. It makes more sense to put the money in your Lloyds Vantage account. If you do want a monthly saver set up a direct debit to do the transfer.

mr_fishbulb

Versus wrote: »

1) I only have a lloyds tsb classic account. I don't have other bank's account such as HSBC, santander, barclays etc. I don't have it except one lloyds tsb account. So the term and conditions to get the 4% is to maintain 5k-7k in the account and pay in 1k each month. So, is it ok if i just transfer my money from my easy saver to the classic vantage? does this count as paying 1k into the classic vantange and will i get the 4% interest?

Where do you get your salary paid? Is that over £1000?

Versus

apt wrote: »

The answer to 1) is yes, and to 3) is 4% for every day your balance is £5,000. On 2) are you sure you want a Lloyds monthly saver as this interest rate would be only 2%. It makes more sense to put the money in your Lloyds Vantage account. If you do want a monthly saver set up a direct debit to do the transfer.

oh, so that's mean once my money inside the vantage is lower than 5k even for few mins, i'll automatically get 3% for that month? i just plan to put some of it into the monthly saver since i apply for it before i know the vantage. btw, so any idea why i can't choose to pay/set up standing order to monthly saver in the classic account?

mr_fishbulb wrote: »

Where do you get your salary paid? Is that over £1000?

i'm an international student and I did bring some money to the uk. However, I don't have any income so what I am planning is transfer my money between my classic vantage and easy saver every month. So I'll transfer 1k to classic vantage from easy saver and after that, transfer the 1k out from classic vantage to easy saver again every month. So will that make me get the 4% interest?

Thanks for all the answers and i really appreciate it. Just ask somemore questions to confirm it. thanks~

Mikeyorks

Versus wrote: »

oh, so that's mean once my money inside the vantage is lower than 5k even for few mins, i'll automatically get 3% for that month?

No. I think apt chose the phrase 'every day' carefully? It's the balance at the end of the day that counts. So if you use an internal transfer or Faster Payment and restore the balance before the day end that's what counts. The interest is calculated daily .... so even if you dip below £5k on one day .... it's only that day that would attract 3%. The rest would be 4%.

So I'll transfer 1k to classic vantage from easy saver and after that, transfer the 1k out from classic vantage to easy saver again every month. So will that make me get the 4% interest?

It will. But wouldn't it be better to do Vantage --> Easy Saver and then Easy Saver --> Vantage? As that keeps your £1k in the Vantage at the better rate?

Versus

Mikeyorks wrote: »

No. I think apt chose the phrase 'every day' carefully? It's the balance at the end of the day that counts. So if you use an internal transfer or Faster Payment and restore the balance before the day end that's what counts. The interest is calculated daily .... so even if you dip below £5k on one day .... it's only that day that would attract 3%. The rest would be 4%.

It will. But wouldn't it be better to do Vantage --> Easy Saver and then Easy Saver --> Vantage? As that keeps your £1k in the Vantage at the better rate?

thanks, i think i know how it works now.

thanks for the info, ya, that would be better if my vantage balance is lower than 7k but i thought it would be the same if my balance in the vantage is maintained at 7k? for example, 1k from easy saver--> 7k vantage end up having 8k total balance and transfer the 1k from vantage-->easy saver. so my vantage is still maintained at 7k. so is it the same? sorry for asking so many questions. i think this maybe the last question.

thanks again~

Stochasticity

Versus wrote: »

thanks, i think i know how it works now.

thanks for the info, ya, that would be better if my vantage balance is lower than 7k but i thought it would be the same if my balance in the vantage is maintained at 7k? for example, 1k from easy saver--> 7k vantage end up having 8k total balance and transfer the 1k from vantage-->easy saver. so my vantage is still maintained at 7k. so is it the same? sorry for asking so many questions. i think this maybe the last question.

thanks again~

All that matters is your balance at the end of the day and that each day it is upwards of £5k (and that you meet the £1k funding requirement per month, but the funding can come from any source whatsoever, including an internal transfer from any other Lloyds TSB account you may have).

4% interest annually is equivalent to 0.010746...% daily.

100 * ((365th root of 1.04) - 1) = 0.010746...

So, they look at your balance at the end of the day and they pay you 0.010746...% for that day.

So if you have exactly £5k in the account at the end of 14th January you will earn 53.7p interest (gross) for that day.

5000 * 0.010746...% = 53.7...p

They repeat the above calculation at the end of every single day and then the amount of interest that accrues in total over the thirty one days of January will be paid to you around the 1st February, less tax if necessary.

If your balance dips below £5k at the end of any given day, for that day only you will earn a lower rate (either 3%, 2% or 0.1% depending on the exact level of your balance).

And if your balance is greater than £7k at the end of any given day, you will earn 4% gross interest on the first £7k in the account, and you will not earn any interest at all on the excess above £7k.

Therefore, the only harm in having £8000, say, in your Vantage account is that you have £1000 in the account that is not earning you any interest.

Hope this clears things up a little for you.

Versus

Thanks for every answers given. I understand everything now. hehe.

Versus

oh besides that, i still have one question which is any idea why i can't choose to set up standing order/pay to monthly saver in the classic account? or i need to use the make a payment option?

Mikeyorks

Versus wrote: »

so is it the same?

No. You'd only mentioned £5k earlier. Under no circumstances keep more than £7k in a Vantage account as the excess attracts no interest. Even make sure you move the monthly interest out .... in order to keep it at £7k.

If you have more than £10k available? You can open a 2nd Vantage account (in Branch if you can't do it online) and keep £5k in each. That way you just move £1k from Vantage A to Vantage B .... and back again. That way you satisfy the funding requirement.

Versus

ic. ya. thanks for the infos again. hehe.