New Lloyds Vantage current account

Cpu2007

I found this topic very interesting and equally confusing - it's not your fault guys, it's me trying to get in the world of saving and investment

So please bear with me please.

Let's say Easy saving accounts give 2%, this means that I get 2% on the amount in the account which is calculated daily, so if I have £2000 in it, every single day my interest will be calculated on a £2000 amount. However, taking money off (e.g 1000) will mean that I'll be getting interest only on £1000. This means that taking money out unnecessarily has no benefits.

What I don't understand about the vintage account is what some people are saying here that they transfer £1000 in it every month and then remove it, and they do so across multiple vintage accounts. If that's true, what exactly is the benefit of it? I mean if your account gets interest on the money on what you have in it (£2000) and you transfer in £1000 and then take it back, the amount in your account will be still £2000 and they your doing this unnecessary transfer for the sake of keeping the account open then right? so what exactly you guys thing are the benefits of such processes? wouldn't be easier and better to have an or multiple saving accounts and keep putting money in them even if you get 1.5% as the growing amount will give higher return?

innovate

The absolute maximum you get interest on in a Vantage account is £6K (only £5K if you are not on the special offer they had earlier this year).

To earn any interest, you have to deposit £1K a month. People who have their max £5K or £6K already in the Vantage accounts wouldn't benefit from leaving an additional £1K in there.

So they just cycle the same £1K through their Vantage (and potentially several other accounts at other banks that require monthly funding), and possibly park the money for a month in another account that pays 3% or more AER.

missile

innovate wrote: »

.... park the money for a month in another account that pays 3% or more AER.

I would like to find one of those

innovate

missile wrote: »

I would like to find one of those

Santander 123, if you can have more than £3K in it. I have seen rumours though that they will drop it significantly in February.

Assuming they keep the cashback going, it might still work out the best instant access rate account in town for some time to come.

missile

innovate wrote: »

Santander 123, if you can have more than £3K in it. I have seen rumours though that they will drop it significantly in February.

Assuming they keep the cashback going, it might still work out the best instant access rate account in town for some time to come.

Interest - on your current account balance:

• 1.00% AER/gross (variable) on balances from £1,000
• 2.00% AER/1.98% gross (variable) on balances from £2,000
• 3.00% AER/2.96% gross (variable) on balances from £3,000 and up to a maximum of £20,000.

Santander charge a fee of £2 per month for that account. I do appreciate if one qualifies for the cashback and rebate of the fee for the credit card you may save more than the fees. I dislike accounts with gimmicks and conditions and I was looking for the one that pays more than 3%

Originally Posted by innovate
.... park the money for a month in another account that pays 3% or more AER

innovate

missile wrote: »

I dislike accounts with gimmicks and conditions and I was looking for the one that pays more than 3%

Fair enough if you put your dislikes in front of your ability to earn interest. I was just mentioning the 123 because am getting well in excess of 3% from it, even after allowing for the £2/mth charge.

Gromitt

missile wrote: »

I would like to find one of those

They exist, but not for new customers

I'm still getting 4% until January on one of my accounts :eek:

innovate wrote: »

Fair enough if you put your dislikes in front of your ability to earn interest. I was just mentioning the 123 because am getting well in excess of 3% from it, even after allowing for the £2/mth charge.

I assume only because you have your council tax, water, gas and electric as DDs from it?

I was thinking of opening a 123 account next year, but if they are likely to reduce the interest, then there will be no point, as the amount of cashback I'll receive will only just pay the annual fee.

innovate

Gromitt wrote: »

I assume only because you have your council tax, water, gas and electric as DDs from it?

Yes, and landline/broadband and mobile.

Gromitt wrote: »

I was thinking of opening a 123 account next year, but if they are likely to reduce the interest, then there will be no point, as the amount of cashback I'll receive will only just pay the annual fee.

It's only some unconfirmed rumour that they will drop the rates- - though I wouldn't be too surprised if they did. As and when they do, I will re-assess whether the account is still worth keeping. For right now, it's still a no-brainer for me.

Don't forget, there's still £45 Quidco/Topcashback cashback on offer presently for the 123. Assuming it will get paid, this would pay for almost 2 years of the account fee (until they raise the fee....lol).

Dekota

Has everybody been credited with their interest? I've not had anything so far.

boobbby

Dekota wrote: »

Has everybody been credited with their interest? I've not had anything so far.

Probably show up after midnight !!