New Lloyds Vantage current account

savetilibleed

savetilibleed wrote: »

I had the first of my three a/cs changed on 11 Sept and the other two on 19 Sept. On the latter date, interest of nearly £5 appeared in each of these two a/cs, but not in the first a/c on the date it was switched. Goodness knows why interest then. On tenterhooks waiting to see what happens at the usual interest date

My interest is in. Seems to be about right. Difficult to work exactly as balance changed daily in one account. And what was paid now in the two accounts also paid early on switching is about right when both are summed. So seems OK. :rotfl:

iilg

YorkshireBoy wrote: »

I have more than I was expecting!

However, because my 'extra' equates to one days interest, I suspect they have included yesterday's (ie 1st October) accrued interest in September's payment*.


* Excluding the £1 Tesco DDs which left very late in the month, I've had £5,006 in each account since 12th September and I've received £8.63 interest per account.

I make that 20 days, despite there only being 19 days from 12th to 30th September...

£5,006 x 0.393 / 365 x 20 x 0.8 = £8.63


EDIT: Something which may interest others is that I've received 4% AER on the entire balance from the 12th September, despite 2 of my 3 Vantage accounts not having the requisite DDs set up until the 17th, & 18th of the month respectively...so it seems they do a check at month end for the DDs being present - not each day - for interest calculation.

Thanks for that update. Do your DDs 'look as though they're active' or was that a red herring all along?

slopemaster

Me too, I got my extra 90p for the 6 days since I phoned them!
(Took me ages to work out as money was going in and out all month!)

My DDs are showing as 'frequency not known' as they haven't been taken yet.

YorkshireBoy

iilg wrote: »

Do your DDs 'look as though they're active' or was that a red herring all along?

Each Vantage account saw 2 DD pulls during September (I was being cautious...as I often am).

These were 'one-off' pulls, ie not regular £1/month pulls. I don't plan on making any more this month and will check my interest in November...but fully expect 4% AER.

I note people were trying to define 'active' earlier in the thread (as a result of what they'd been told by LTSB staff). My personal view is that an 'active' DD is simply a DDI (Direct Debit Instruction) that has not lapsed under the dormancy rules.

iilg

YorkshireBoy wrote: »

Each Vantage account saw 2 DD pulls during September (I was being cautious...as I often am).

These were 'one-off' pulls, ie not regular £1/month pulls. I don't plan on making any more this month and will check my interest in November...but fully expect 4% AER.

I note people were trying to define 'active' earlier in the thread (as a result of what they'd been told by LTSB staff). My personal view is that an 'active' DD is simply a DDI (Direct Debit Instruction) that has not lapsed under the dormancy rules.

Better to be cautious and avoid waste-of-time phone calls later to LTSB, eh?

I do wonder about dormancy and when/if the current dormancy rule will change from 13 to 39 months. You could have a DD set up with a stockbroking account say where you only need it for emergency shortfall cover for example. Would that kind of DD never become dormant?

oldfella

I got an extra day of interest as well - presumably the month includes the 1st.

Gromitt

I opened a new account at the weekend and put 5K in on Sunday which showed up yesterday, I wonder if I'll get any interest on it?

SAHD_Jim

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.

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.

Steve_xx wrote: »

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.

But if you have £5985 on day one, you are depriving yourself a small amount of interest each day until the cumulative interest reaches £15.

If you want to be strictly correct to obtain "maximum interest" without going over, you need to start with £6000 and then transfer the daily interest out each day, thus keeping the effective balance at £6000.

Either way, the numbers are very low so personally I'll just stay at £6000 from day one and transfer the interest out at the end of the month.

missile

YorkshireBoy wrote: »

How do you know? The interest (for September) hasn't been paid yet. Agreed.

It has and I received 3% not 4%. Like I said, you have to ask for it on existing accounts.

pearl123

And does the beginning of the month starts on the 2nd?