New Lloyds Vantage current account

Steve_xx

bettz wrote: »

.... and set up a monthly transfer of £1000 into it every month which will sit in the account for 1 day then go back.
/QUOTE]
You seem to be suggesting that you have 5001 in the account and that you will transfer 1000 each month for a day and then move it out, leaving you with 4999 in the account? This is £1 less than the balance you will need to trigger the 4% rate, and, you should note that you would only get the 4% rate on the full balance for each day that the balance falls between 5 and 6k.
Ideally you would maintain a balance of around 5985 in the account to allow for accrual of interest over the month. That way you will obtain maximum interest.

MoneySaverLog

Steve_xx wrote: »

Ideally you would maintain a balance of around 5985 in the account to allow for accrual of interest over the month. That way you will obtain maximum interest.

Sure a balance of £6,000 over the month and then move the interest out on the 2nd of the month to another account will be better.

Steve_xx

MoneySaverLog wrote: »

Sure a balance of £6,000 over the month and then move the interest out on the 2nd of the month to another account will be better.

Not really because interest is earned, added and accrued on a daily basis (though of course you only see the addition once a month). Therefore if you have 6k in the account from day one of the month, then on day two your balance plus the first days interest would take the balance over 6k, ie the balance with interest after day one might be 6000.50p, then on day 2 about 6001 etc. You don't get any interest on the amount in the account that's in excess of 6k.

pearl123

OK.. for the slightly mathematically dumb. That's me.
So I just need to leave £5000 in the classic account bank and then pay in £1000 every month and then withdraw the £1000?
And the direct debits just need to be set up. Do the DD have to come out every month? Is that it?
And if it goes over the £6000 you just don't earn any interest for the period it stays over the limit?

Steve_xx

pearl123 wrote: »

OK.. for the slightly mathematically dumb. That's me.
So I just need to leave £5000 in the classic account bank and then pay in £1000 every month and then withdraw the £1000?
And the direct debits just need to be set up. Do the DD have to come out every month? Is that it?
And if it goes over the £6000 you just don't earn any interest for the period it stays over the limit?

Yes that's about right, but maintain the account at about 5985 to allow for interest accrual bringing the balance upto 6k over the month. The DD's, according to the terms and conditions, don't have to be "active", they merely have to be showing on the account.
If the balance goes over 6k then you still earn interest each day, but not on the amount that is in excess of 6k.

badger09

Steve_xx wrote: »

bettz wrote: »

.... and set up a monthly transfer of £1000 into it every month which will sit in the account for 1 day then go back.
/QUOTE]
You seem to be suggesting that you have 5001 in the account and that you will transfer 1000 each month for a day and then move it out, leaving you with 4999 in the account? This is £1 less than the balance you will need to trigger the 4% rate, and, you should note that you would only get the 4% rate on the full balance for each day that the balance falls between 5 and 6k.
Ideally you would maintain a balance of around 5985 in the account to allow for accrual of interest over the month. That way you will obtain maximum interest.

Haven't had any lunch, or even breakfast :eek: so brain might not be working, but if OP starts with £5001 in the Vantage account, transfers in £1000 every month and transfers said £1000 out a day later - surely their balance will still be £5001 (+accrued interest - £1 DDs) :think:

Didn't know DDs could be 50p, always assumed £1 minimum

manyaonisland

pearl123 wrote: »

OK.. for the slightly mathematically dumb. That's me.
So I just need to leave £5000 in the classic account bank and then pay in £1000 every month and then withdraw the £1000?
And the direct debits just need to be set up. Do the DD have to come out every month? Is that it?
And if it goes over the £6000 you just don't earn any interest for the period it stays over the limit?

I am sure you mean classic account with 'VANTAGE' added to it. But reconfirming!

Also why cannot you have £6K in your account for a month so that the last 1K (as you plan to have 5K) will also earn 4% interest :A . of course on the day when you have 1K transferred to this account that 1K will not earn any interest but that will be only for a day or two.

Steve_xx

badger09 wrote: »

Steve_xx wrote: »

Haven't had any lunch, or even breakfast :eek: so brain might not be working, but if OP starts with £5001 in the Vantage account, transfers in £1000 every month and transfers said £1000 out a day later - surely their balance will still be £5001 (+accrued interest - £1 DDs) :think:

Didn't know DDs could be 50p, always assumed £1 minimum

Sorry, yes you're right there!

Wig

I'm new to all this,...have a vantage account, that has atleast 4 DD already....

Do I have to do anything to get the extra interest rates?

Steve_xx

manyaonisland wrote: »

I am sure you mean classic account with 'VANTAGE' added to it. But reconfirming!

Also why cannot you have £6K in your account for a month so that the last 1K (as you plan to have 5K) will also earn 4% interest :A . of course on the day when you have 1K transferred to this account that 1K will not earn any interest but that will be only for a day or two.

The additional 1k does not have to stay in the account for a day. It can be moved in, and then straight out within a minute. This is how I have always operated these accounts.