LTSB Incentive Saver

opinions4u

Baldur wrote: »

There is no guarantee of 3% for 12 months in the Ts&Cs, the rate is variable, as per my original post.

But the fixed guarantee is made in the invitation letter.

Baldur

opinions4u wrote: »

But the fixed guarantee is made in the invitation letter.

Letter versus Ts & Cs - which is legally binding..............?

Does marketing blurb in a letter constitute a contract?

kar999

noh wrote: »

That's email marketing.
What are your mail marketing preferences set to? (you cant see this online)

No idea.our banking facilities were opened three decades ago whhen such things never existed.

kar999

richardmk wrote: »

As the change over does not happen until 27 June, opening an account at the start of May is surely premature as it is beneficial to keep the 4% rate as long as possible, and then get 12 months at 3%. Accounts opened in April with vantage funds will mean the saver is going to lose 1% interest for 2 months, or if the account is opened and the intention is to fund in June the saver will only get 10 months rather than 12 at 3% guaranteed and 2 months will be wasted.
It feels that people insisting on opening accounts now are being impatient. Lloyds TSB will no doubt launch the account for all nearer to 27 June.

I'm leaving the 12k surplus in our vantage accounts till end of June but opened new accounts now as my esavings rate bonus dies soon.

opinions4u

Baldur wrote: »

Letter versus Ts & Cs - which is legally binding..............?

Both.

Does marketing blurb in a letter constitute a contract?

Yes. And even if it's not tested in court, the regulator and the FOS would certainly rule against the bank.

Basically it's a variable rate account but they're telling you they won't change the rate on it.

If they reduce the rate, create merry hell and win compensation.

If they increase the rate, keep quiet!

Expect them to do neither.

exel1966

opinions4u wrote: »

Both.

Yes. And even if it's not tested in court, the regulator and the FOS would certainly rule against the bank.

Basically it's a variable rate account but they're telling you they won't change the rate on it.

If they reduce the rate, create merry hell and win compensation.

If they increase the rate, keep quiet!

I think that is the best way to play this, open the account up, sit back and see what happens. If you've got the letter stating fixed then Lloyds won't have a leg to stand on and it should be a fairly easy process through their complaints dept.
I'd bargain that it could actually be advantageous considering possible compensation for the inconvenience of their potential !!!!-up.

frugalfran

Does anyone kow how they calculate the interest - presumably it's on a 'daily balance' figure, when how and when do they calculate this? If I moved my funds from - say - current account - to incentive saver at the end of my working / spending day, then moved them back the next morning, would they give me interest on the overnight total?

nzseries1

Thought I'd add my bit to the discussion, even though it's an old thread it's the top result for Google for certain searches.

The letter does say "3.00% AER, fixed for 12 months".
The terms and conditions do say "The interest rate is variable".
When you open this account in Internet Banking, and click the "Interest rate details" link, it says "2.96% AER".

I called to query these discrepancies, and the customer services lady said to me when I called "No, your interest rate is 3% AER fixed. Keep hold of the letter as proof".

I'm a little unhappy about all these inconsistencies in the paperwork and Internet banking... but I'm still going to use the account.

opinions4u

nzseries1 wrote: »

The letter does say "3.00% AER, fixed for 12 months". The terms and conditions do say "The interest rate is variable".

When you open this account in Internet Banking, and click the "Interest rate details" link, it says "2.96% AER".

If it says "2.96% gross pa" that's correct, as the interest is added monthly and the compounding effect works out at 3.00% AER.

If it says 2.96% AER there is an error.

So does it say AER or gross online?

johnmoney05

nzseries1 wrote: »

Thought I'd add my bit to the discussion, even though it's an old thread it's the top result for Google for certain searches.

The letter does say "3.00% AER, fixed for 12 months".
The terms and conditions do say "The interest rate is variable".
When you open this account in Internet Banking, and click the "Interest rate details" link, it says "2.96% AER".

I called to query these discrepancies, and the customer services lady said to me when I called "No, your interest rate is 3% AER fixed. Keep hold of the letter as proof".

I'm a little unhappy about all these inconsistencies in the paperwork and Internet banking... but I'm still going to use the account.

I guess the discrepancies is becasue you got pay interest monthly?! Just a quess....