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LTSB Incentive Saver

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Having just received the Ts & Cs for the above account, which has stirred up a lot of discussion in the 'Vantage' threads, the following appear to be the pertinent details which have not already been clear from the initial letter or discussion with CS staff:

1. The interest rate is VARIABLE, not fixed and is paid monthly - 3% AER, 2.96% Gross, 2.37% Net.

2. Balances >£50,000 earn no interest.

3. Account can be closed at any time with no loss of interest already earned.

4. Deposit in branch or by transfer from an account with LTSB or another bank.

5. Payments out only by telephone banking or internet banking & payment must be to an LTSB current or saving a/c in your name/joint a/c in any of your names. Standing Orders cannot be set on the account up to make these payments.

6. On maturity, balance will be transferred to a Easy Saver account or equivalent.

7. 30 day cooling off period.
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Comments

  • anamenottaken
    anamenottaken Posts: 4,198 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thanks.

    Sounds much the same as earlier Incentive Savers other than no mention of a penalty if a withdrawal is made.

    Being able to make penalty-free withdrawals during the year means that there is no need to calculate how much interest will be added for the remainder of the term in order to avoid having a >£50K balance.
  • Saints2011
    Saints2011 Posts: 933 Forumite
    edited 3 May 2011 at 10:30PM
    Baldur wrote: »
    Having just received the Ts & Cs for the above account, which has stirred up a lot of discussion in the 'Vantage' threads, the following appear to be the pertinent details which have not already been clear from the initial letter or discussion with CS staff:

    1. The interest rate is VARIABLE, not fixed and is paid monthly - 3% AER, 2.96% Gross, 2.37% Net.

    2. Balances >£50,000 earn no interest.

    3. Account can be closed at any time with no loss of interest already earned.

    4. Deposit in branch or by transfer from an account with LTSB or another bank.

    5. Payments out only by telephone banking or internet banking & payment must be to an LTSB current or saving a/c in your name/joint a/c in any of your names. Standing Orders cannot be set on the account up to make these payments.

    6. On maturity, balance will be transferred to a Easy Saver account or equivalent.

    7. 30 day cooling off period.


    Completely incorrect
    Fixed interest of 3.00%AER for 12months > Will mature to Easy Saver on bonus or equiv
    Annual interest
    Peantly free access to monies no loss of interest
    £1.00 to £50,000 interest paid
    Deposit via, IBank PBank or Branch cannot have S/Orders set up

    I'd challenge you to speak to any member of savings who would tell you any different.
    Can I find out my credit score?
    You do not have a single credit score or rating. Different organisations take different information into account when working out your credit score and may have different scores for different products. (Kindly from Experian)
  • cos69
    cos69 Posts: 413 Forumite
    My letter also states "3.00% AER, fixed for 12 months" and no loss of interest on withdraw of any money
    "How could I have been so mistaken as to trust the experts" - John F Kennedy 1962
  • Baldur
    Baldur Posts: 6,565 Forumite
    KirbyBirch wrote: »
    Completely incorrect........I'd challenge you to speak to any member of savings who would tell you any different.
    Rather pointless challenging me - my post merely shows the contents of the Terms & Conditions (Ref: INOR/0411), rather than the initial letter.
    3.2 The interest rate is variable. You will find our current interest rates by phoning us on 0845 300 0032
    So unless different Ts & Cs are being sent to different customers, speaking to a member of savings would be rather pointless, despite what you say.
  • dqnet
    dqnet Posts: 308 Forumite
    Tenth Anniversary 100 Posts Combo Breaker Name Dropper
    Is it just me and excuse the utter ignorance but can someone post the link to this saving product.. I've go e to their site and can't seem to see anything about the incentive saver issue!????
  • anamenottaken
    anamenottaken Posts: 4,198 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    dqnet wrote: »
    Is it just me and excuse the utter ignorance but can someone post the link to this saving product.. I've go e to their site and can't seem to see anything about the incentive saver issue!????

    It's not on the LTSB website. It is an offer made to some people who hold LTSB current accounts where they will no longer be receiving interest on a couple of thousand pounds (amount between £5K and £7K) and a lower rate than they are used to on the rest.

    You need a letter from LTSB and individual code it contains in order to apply. If you don't have the letter, the account isn't available.
  • anna42hmr
    anna42hmr Posts: 2,887 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    KirbyBirch wrote: »
    Completely incorrect
    Fixed interest of 3.00%AER for 12months > Will mature to Easy Saver on bonus or equiv
    Annual interest
    Peantly free access to monies no loss of interest
    £1.00 to £50,000 interest paid
    Deposit via, IBank PBank or Branch cannot have S/Orders set up

    I'd challenge you to speak to any member of savings who would tell you any different.

    The OP is correct, whilst the first letter stated fixed, and staff who i opened mine with said fixed, the t&c's sheet i received yesterday in the post states variable like the origional poster said.

    however the letter also contradicts it self or is at least poorly worded as states variable rate in term 3.2, however 4.1 states on day fixed term ends balence will be transferred to an easy saver.

    Also ref interest, i was told on opening interest paid annual, but sheet states in term 3.3 paid monthly.

    And it is for the right account as it states for incentive savers opened from 26 april and confirms only able to be opened over the phone
    MFW#105 - 2015 Overpaid £8095 / 2016 Overpaid £6983.24 / 2017 Overpaid £3583.12 / 2018 Overpaid £2583.12 / 2019 Overpaid £2583.12 / 2020 Overpaid £2583.12/ 2021 overpaid £1506.82 /2022 Overpaid £2975.28 / 2023 Overpaid £2677.30 / 2024 Overpaid £2173.61 Total OP since mortgage started in 2015 = £37,286.86 2025 MFW target £1700, payments to date at April 2025 - £1712.07..
  • Baldur
    Baldur Posts: 6,565 Forumite
    anna42hmr wrote: »
    .....however the letter also contradicts it self or is at least poorly worded as states variable rate in term 3.2, however 4.1 states on day fixed term ends balence will be transferred to an easy saver.
    If you read 4.1 in conjunction with the second introductory paragraph under "Incentive Saver Conditions", it is not contradictory, as it refers to a fixed term, not a fixed rate for a fixed term.

    The fixed term is stated in the second sentence of the above paragraph:
    It lasts for a year and has a variable interest rate.
  • anna42hmr
    anna42hmr Posts: 2,887 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Baldur wrote: »
    If you read 4.1 in conjunction with the second introductory paragraph under "Incentive Saver Conditions", it is not contradictory, as it refers to a fixed term, not a fixed rate for a fixed term.

    The fixed term is stated in the second sentence of the above paragraph:

    thanks re-reading it again, i see what you mean
    MFW#105 - 2015 Overpaid £8095 / 2016 Overpaid £6983.24 / 2017 Overpaid £3583.12 / 2018 Overpaid £2583.12 / 2019 Overpaid £2583.12 / 2020 Overpaid £2583.12/ 2021 overpaid £1506.82 /2022 Overpaid £2975.28 / 2023 Overpaid £2677.30 / 2024 Overpaid £2173.61 Total OP since mortgage started in 2015 = £37,286.86 2025 MFW target £1700, payments to date at April 2025 - £1712.07..
  • dqnet
    dqnet Posts: 308 Forumite
    Tenth Anniversary 100 Posts Combo Breaker Name Dropper
    It's not on the LTSB website. It is an offer made to some people who hold LTSB current accounts where they will no longer be receiving interest on a couple of thousand pounds (amount between £5K and £7K) and a lower rate than they are used to on the rest.

    You need a letter from LTSB and individual code it contains in order to apply. If you don't have the letter, the account isn't available.

    oh right... :)
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