Lloyds TSB's 8% vs. Icesave's 5.45%

drunknmunky

Evening all,

Quick question from a savings newbie. Everyone seems to be claiming Icesave to have the best instant access saving account. However, Lloyds TSB offer a much better rate at 8%.

Why isnt this listed in Martin's weekly email/savings article on the boards?
Is is becase you dont need a current account with Ice Save? If this is the case, then with Lloyds TSB you only need to stick a £1 in there and not bother with it again, so surely this is the better paying account.

Please correct me if i'm wrong, which I probably am...

Cheers

YorkshireBoy

LTSB is good for 'new money' - either paid from income or drip-fed from another savings account.

Icesave is the better account for a lump sum.

Ian_W

It is mentioned in the article about regular monthly saver type accounts:
https://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1108401263,93536,

As Yorkshire Boy says, you can't just stick a lump sum in, you have to drip feed it either from another savings account or from your wages. Icesave and ICICI are the best "clean paying" instant access accounts but some regular savers, inc LTSB, beat them but you can only put so much a month in usually for a fixed period.

[Deleted User]

To further clarify. With the LTSB 8% Regular Saver there is a maximum deposit of £250 per month, after an initial outlay of £500 maximum. Thence to derive the maximum benefit from the account one has to commit to make regular monthly deposits for 24 months, and by implication make no withdrawals.

In short, you are not comparing like with like.

drunknmunky

Thanks clearing that up everyone, made things a lot clearer!

ok so, if i have say £3000 to put straight into a savings acc, and want to then put in a futher £500 a month, the best thing for me to do is to put £500 straight into the Lloyds TSB, followed by an additional £250 a month, and the other £2500 into Icesave, with a monthly £250 in there.

Would this be the best combo?

chesky369

Don't forget, it's not 8% for every month, but as it's for two years, I can't work out exactly what it is. If it were just for one year, it would be about 4% (averaged out over the year).

Mc4ndy

Alliance and leicesters current account is paying 6.1% up to £2500 bal and their regular saver is 12% for a year...

Mc4ndy

Won't you get 8% on half of the total you will have invested at the end of the two years, about £240 gross

Have you got an ISA already drunknmonkey?

tom188

If you pay in the max initial deposit and amount per month LTSB you should end up with roughly £570 interest.

tom188

AL dont allow you to open the 6.1% account and the 12% account together anymore do they? Its 6.1% Premier Direct or the Premier + Regular saver - cant have PD and RS.

drunknmunky

yes, I have an NS&I ISA.

I'm not really looking at A&L purely down to the feedback they have received on this forum.

I dont really understood what some of you have wrote regards the 8% interest. What I understand from what you have written is that if I opened the savings account as soon as the offer came on the market, I would have gained 8% interest over the 2 years. If I join with 1 year and 6 months left, I would get 6%, and if i opened it with 1 year left I would get 4% and if I did it with just 6 months left I would only gain 2%

Is that correct?