Lloyds TSB Save The Change

gkf

I already do something similar to this after reading an article in the 'letters' page in an American magazine. I keep a cash book and note all spends in it so I know how much I have left in my bank account. I have been rounding up the amount I spend each time to the next £1 when I enter it in my cash book and then at the end of the month when I check my cash book against the bank statement, I usually have around a £20 profit. I then draw that out of the cash machine and feel rich for a day or so while it lasts in my purse

roswell

exel1966 wrote:

WRONG ! If there are insufficient funds in the account funds will not be moved to the savings account. If you have signed up for this then the onus is on the account holder to know what funds are in their account. If you already operate a LLoyds Current and savings account this is an oppertunity to gain FREE money during FEB / MAR.

EH ?? it was an example the computer isnt going to give a stuff as there IS sufficient funds to save the change, This account will be a night mare to budget with with each transaction you are gettign a variable balance its just a financial product to get you closer to that overdraft and make more money for the banks.

Unless you know the exact amount of transaction you will make and then budget an extra max 99P its going to be a nightmare. Or is the idea that you save the change till you get close to 0 then move the change you saved to cover your next transaction ???

The ONLY benifit to thsi account is the free money minus tax. after that its pointless.

AndyR_3

roswell wrote:

The ONLY benifit to thsi account is the free money minus tax. after that its pointless.

Yes, if you're a member on here and budget properly each month, save on a regular basis and know exactly how much you're spending each week on everything.

But a lot of "normal" people (i.e. not MSEers) just go to the bank, check their balance and whatever it says is whatever they spend. I know this, I see customers who do it every day.

Obviously you could just set up a standing order to the savings account, and you could certainly get a better deal on savings elsewhere, but for "normal" people who don't think they can afford to save, this is ideal. Hopefully, these people won't miss the pennies going out, and won't have to touch their savings.

It's optional anyway. It'll work for some but not for everyone.

Now, how come they're taxing me on the bonus money? I thought incentives were tax free? I do wonder if the "tax" will actually find its way to the Inland Revenue. Could one request a tax deduction certificate for this money?

mary

Why do you think incentives are tax free? As with regular savers, you earn extra, 8% or whatever, but unless you are a non tax payer, you pay tax, so I can't see why this should be any different? Unless you know something I don't!

YorkshireBoy

mary wrote:

Why do you think incentives are tax free?

Maybe we've been conditioned to think so. For example, my Barclays £100 and A&L £50 referral payments weren't taxed.

Additionally, my credit card cashback isn't taxed.

Isn't the LTSB SavetheChange 'matching payment' promotion simply a '100% cashback' offer?

jimclark1967

Does anyone know whether this condition:

7. If on any day you do not have sufficient funds in your current account to pay your debit card transactions or if any single transaction has taken your account overdrawn (whether or not the overdraft is authorised), we will not round up any debit card transactions on that day and no “change” will be transferred to your nominated savings account. We will not make a Save the Change transfer to your nominated savings account if that transfer will take your current account overdrawn.

applies whether the account is overdrawn before the transaction took place or just if the transaction itself would "tip" the balance overdrawn.

I ask because I'm in the 2nd year of the LTSB graduate account with a £1,500 interest free OD limit which I tend to run at around £1,200. Having planned what to spend using the debit card next month I might struggle to keep it above zero for the whole month :mad:

JC

mary

Can anyone explain the following:

2. Matching funds for February purchases will be credited to your nominated savings before 1 April 2007 and for March purchases before 1 May 2007, providing that an eligible savings account is still open and you are still participating in the Save the Change scheme on the date that the matching funds are credited.

Does this simply mean that you have to keep both current and savings accounts open with a positive balance in them both until 1 May. What exactly do they mean by "still participating in the scheme" - as I understand it, you can only make your purchases in Feb & MArch.

Dagobert

What exactly do they mean by "still participating in the scheme"?

It means that they will only match your Feb/Mar savings if you haven't opted out of the Save the Change scheme by then.

Kilty_2

Under 19's Current Account isn't eligible for this

monki_man

If you still hold a Graduate account with them and your card is a visa electron, can this still qualify?