What can you tell me about the Lloyds TSB Cash Account?

EltonJohnFan

Good evening all, as per my last question:
https://forums.moneysavingexpert.com/discussion/2996350

My parents and I have now put the options to her and my grandmother has decided that she wants to (preferably) go with the Lloyds TSB Cash Account as it's the closest bank to her home, literally across the road. My mother is going to either make an appointment over the telephone or go into the local branch of Lloyds TSB with her and try to get the account opened as soon as possible. My grandmother is really keen to get started in operating her own bank account seeing as she's always dealt with the Post Office and their Card Account and I'm hoping you could maybe share some information on this Lloyds account with me so that I could perhaps pass this on to her or my mother? With all these Post Office closures, it's becoming harder for my grandmother to find one and there really is only the main Post Office left now and that's a few miles away from here. I'm not too sure about Lloyds TSB as I've never banked with them before but I've had a positive experience customer service wise and that does count in their favour with me. My grandmother is very typical of her generation and is quite thrifty, would she be able to open a "better" account than this or perhaps have the option of "upgrading" at some point? I think she would maybe feel she is not a "good customer" if she's only giving their lowest ranking account and she isn't interested in opening a savings account alongside her normal bank account, no matter how much we've tried to convince her she wants everything in the one place. Thank you very much for your help

jen245

As a basic bank account its fine, the ony problem with it, is that with the debit card they issue, you can only withdraw cash from Lloyds TSB cash machines, other than that its fine. I have one, but will be closing it as Ive recently opened a Halifax reward account and so dont need it anymore. Im not sure what Lloyds TSB's policy is on upgrading these accounts if she doesnt qualify for a normal current account.

EltonJohnFan

Thanks Jen,

I'm pretty sure someone has mentioned to me before about their being some sort of limit on non-Lloyds TSB cashpoints, really important information! Would she have the option of being able to do as I do and pay for things at the checkout by Chip and Pin or is that not possible with this account? I don't want her opening an account that's going to have severe restrictions on its usage when the very reason for her moving over from the Post Office is because it's no longer practical to try and get there everytime she needs money. If you don't think the Lloyds TSB is right for her then can you suggest another bank that might allow her to have the basic account to begin with and if she (or they) decide an "upgrade" is possible then this could happen without too much trouble? I know Natwest/RBS don't allow "upgrades" from their "basic" accounts and so they're ruled out for her. No matter how much I try, I can't convince her to think about opening a savings account at the same time, very firm in her decisions. Best wishes

jen245

The debit card function is fine, standard full authorisation visa debit, so she'll be fine using it for purchases, and one way round the atm issue is to get cashback at a supermarket. TBH I don't really know of any other banks that allow upgrades to full current accounts, with most of them it means a fresh application.

izools

Yes you are right Jen no banks allow upgrades from Cash / Basic accounts to full current accounts.

Cash Accounts don't generate account behaviour scores either, so aren't really a stepping stone to a full account. Just a means to an end for those of us unfortunate enough to suffer a poor credit rating.

JacksterD

Why don't you try opening a standard current account? She doesn't need to get an overdraft with it or anything, but she will get a debit card and a cheque book.

As long as she has a regular income (pension?) and no bad credit history I don't see there being a problem.

As for which bank to go for, if Lloyds TSB are across the road from her then they'd be a good first bet. Otherwise Bank of Scotland or Nationwide are good.

If she does ultimately get rejected for a standard account, which would surprise me, then you can always apply for the more restricted basic account, but you really might as well check out a standard account first.

pmduk

Why are you interested in an upgrade from a basic bank account? In the circumstances you've described in both posts I can't imagine there's going to be a need for an overdraft and that's about the only reason to upgrade these days.

I'd look at the basic accounts offered by Natwest/RBS or Barclays. They offer full banking facilities and debit cards. (I'd avoid RBS if you're in England and NatWest in Scotland. You don't want to inflict Santander on your Mother.) The restriction on debit card withdrawals at Lloyds TSB make it a poor option in my opinion.

Incyder

Lloyds are good at trying to upgrade people to a platinum account (i think thats its name) with a £10 charge each month for having it.

I've had a standard free debit card/chequebook account for the last 20 yrs and am happy with them.

jonesMUFCforever

izools wrote: »

Yes you are right Jen no banks allow upgrades from Cash / Basic accounts to full current accounts.

Cash Accounts don't generate account behaviour scores either, so aren't really a stepping stone to a full account. Just a means to an end for those of us unfortunate enough to suffer a poor credit rating.

Sorry but this is incorrect.
It is possible with time for an offer to upgrade to appear account behaviour is a part of this together with a monthly check of the CRA's.