Lloyds 'Save the Change'

~evanesco~

Hi all,

Just wanted to let you all know about this as I think it's a great idea!!!

Lloyds are starting a new sevice to help you save.

Here's how it works. Say you use your debit card and spend £1.27, Lloyds will take the amount that rounds it up to a full pound (in this case 73p) and deposit it in your savings account for you. They do this for each transaction you use on your debit card. Plus, as a bonus, in March next year they're going to match each deposit they do, so that's double savings for free.

I think it's a very good thing, you're only spending 'round pounds' so it may be easier to keep track off your balance.

What do you other DFW's think....

Evans. xox

learning_to_drive

What happens if you have £1.27 left in your account, and they round it up to £2, taking you over your limit?

£30 charges wipes out any savings you may have!!

Im playing devils advocate but that is the only potential pitfall I could see!

~evanesco~

Very good point!!

I'll check the small print!!

Evans. xox

roswell

The theory is ok but it means you cant budget correctly examples to follow.

Save the change
Balance in account £ £2.50
Spent £1.01
Saved £0.99
Balance in account £0.50
Spent £1.30
Balance in account - £0.80

Not save the change
Balance in account £ £2.50
Spent £1.01
Balance in account £1.49
Spent £1.30
Balance in account £0.19


Effectively each time you use it you will be gettign pennies cloer to your overdraft, If you budget for spends of £200 for example and you make 10 purchase`s ending .01 you will have £9.90 in savings but that means you ahve to budget £210 .... does this make sence?

it would be easier to set up and standing order to save what you want to save and use the old copper jar or dont use cash and just use chip and pin to save the pennies.

JAMIEDODGER

they wont do the transfer if it would take you over your overdraft etc

~evanesco~

It say's if there aren't enough funds in your account, it won't make the transfer.:D

Evans. xox

cattie1

learning_to_drive wrote:

What happens if you have £1.27 left in your account, and they round it up to £2, taking you over your limit?

£30 charges wipes out any savings you may have!!

Im playing devils advocate but that is the only potential pitfall I could see!

That's what I was gonna say!
lloyds are notorious (sp) for this, I imagine you probably will get charged as they are charging you for going 1p over without an authorised o/d and for going over your overdraft!
(can you tell i dislike lloyds!?!)

~evanesco~

Hmmmm,

Just had a read through, they don't do the transfer until about a month after, so in theory, you may not save anything, if you live close to your OD, since they won't transfer if the funds aren't available. Worth thinking about for when one is debt-free though.

Evans. xox

OberonSH

I think it could be a good thing, as long as your budget is fairly flexible. That way you'd have to remember to round u any purchases in your spending diary. I think it would have been a better idea to do this if it was over 50p in the pound, say £1.51 gets 49p set aside, and if you only spend £1.01 you're not 'losing' 99p of your budget.

If that makes any sense.