Lloyd's TSB Current Account - No interest paid.

Bjohn

Hi there, joined Lloyd's about a year and a half ago, deposited quite a sum of money until I opened a savings account (probably 4 - 5 months sitting in my current account). I know current accounts offer interest, all be it minimalist interest.

Now I expected it to pay out at the end of the annual date I had been with them. Nope, that was back in January. So I thought, maybe it's the business year. Nope.

So I checked the rates and charges page on Lloyd's website. It clearly states

Balance Interest Paid Monthly
AER Gross Net %
£1+ 1.50 1.49 1.19
£1,000+ 2.00 1.98 1.59
£3,000 up to £5,000 3.00 2.96 2.37

Funny that. I've had over all of those amounts in my account, all of the time. I've also had no interest paid into my account at any time. Not that I'm bitter, but if I had over 3-5k in my account, like I did, I would definitely be reaping the benefits of a 2.37% Interest rate.

Now maybe I'm a biff and it gets paid at some date, or I don't know.. It does look clear cut that no interest gets deposited each month, or each year.

YorkshireBoy

Upon opening did you add Vantage to your Classic(?) account?

Have you been paying in the requisite £1K per month?

If the answer to either of the above is no, then that's why you haven't received any interest, which is paid monthly.

Bjohn

Not too sure how the hell I missed that all this time. Also not too sure why it doesn't come as standard, well I do, so I don't get their money. Anyway, set it up now, thanks!

MoneySaverLog

Nothing further to add to that except it pays no interest on any amount over the £5,000 so you either have to find a new home for anything over or open up multiple Classic Accounts with Vantage added and transfer a £1,000 into each account every month - Just like you would with the Halifax to get a free fiver every month.

Rupert_Bear

Bjohn wrote: »

Not too sure how the hell I missed that all this time. Also not too sure why it doesn't come as standard, well I do, so I don't get their money. Anyway, set it up now, thanks!

Because like so many they never read the terms and conditions. If you do not look after your money don't expect others too!

Bjohn

Are you actually for real?

You have absolutely no idea how I look after my money, let alone have the right to assume I don't know how to look after it.

Unfortunately, like a lot of people who join Lloyd's, I presumed this option was already opted in for me, like many other banks. However, after reading some good advice on here I have now rectified the problem.

Obviously should have stayed as a guest and not registered.

Rupert_Bear

Bjohn wrote: »

Are you actually for real?

You have absolutely no idea how I look after my money, let alone have the right to assume I don't know how to look after it.

Unfortunately, like a lot of people who join Lloyd's, I presumed this option was already opted in for me, like many other banks. However, after reading some good advice on here I have now rectified the problem.

Obviously should have stayed as a guest and not registered.

True but you have given me a taster!

SnowTiger

Have you considered squireling the money away in to an ISA or high interest savings account that you wouldn't have to worry about funding with £1,000 a month?

2.37% AER is far from the worst return you could get, but it's also not the best.

Gromitt

Bjohn wrote: »

Unfortunately, like a lot of people who join Lloyd's, I presumed this option was already opted in for me

Banks giving money away without you asking for it? That sounds almost insane. I'd guess that the amount of people with qualifying current account but have not asked for Vantage is over 50% (maybe even as high as 70%), therefore Lloyds will be saving a load of cash by not opting people in as standard. Its the exact same reason why banks offer crap interest rates and then high bonuses - to get your custom and then hope you forget that the interest drops to 0.1% after 12 months.

YorkshireBoy

Gromitt wrote: »

Banks giving money away without you asking for it? That sounds almost insane. I'd guess that the amount of people with qualifying current account but have not asked for Vantage is over 50% (maybe even as high as 70%), therefore Lloyds will be saving a load of cash by not opting people in as standard.

To be fair to the OP, LTSB do promote the Vantage option much more prominently these days. Indeed, it's hard, nigh on impossible, to open a standard Classic account online now without having the benefits of Vantage rammed down your throat!

And to be fair to LTSB, if the OP made it clear in branch that there would be just the one deposit (prior to shifting the funds out to a savings account), then the branch advisor may have thought it not worthwhile to promote the Vantage features?

That said, which accounts would have paid 4% gross (3.2% net of basic rate tax) on £5-7K 18 months ago? I'd hazard a guess and say not many at all!

MoneySaverLog

YorkshireBoy wrote: »

That said, which accounts would have paid 4% gross (3.2% net of basic rate tax) on £5-7K 18 months ago? I'd hazard a guess and say not many at all!

Yes and sad to see them cut it too, hope these higher limits and rates return soon to vantage account holders. I have 3 of them and this would encourage me to use them for savings now my incentive saver account is going at the end of the month and regular saver matures. I will need a home for that and I've all but put away this years cash isa allowance, except for a grand.