Lloyds two year 8% regular saver (withdrawn March)

sly_dog_jonah

sly_dog_jonah wrote: »

My anniversary is 5th June (opened with £500 on 5th June and £250 SO on the 8th in the first month, 1st working day of the month thereafter), I'm expecting net interest of £137.64, and another £339.62 a year later if I continue with the SO at the full rate.

I got £138.26, deposits as follows:
05Jun06 DEP 500.00 500.00
08Jun06 SO 250.00 750.00
03Jul06 SO 250.00 1000.00
01Aug06 SO 250.00 1250.00
01Sep06 SO 250.00 1500.00
02Oct06 SO 250.00 1750.00
01Nov06 SO 250.00 2000.00
01Dec06 SO 250.00 2250.00
02Jan07 SO 250.00 2500.00
01Feb07 SO 250.00 2750.00
01Mar07 SO 250.00 3000.00
02Apr07 SO 250.00 3250.00
01May07 SO 250.00 3500.00
01Jun07 SO 250.00 3750.00
05Jun07 INTEREST (NET) 138.26 3888.26

mckain

Hi

This is my first post so sorry if i get things wrong. I started the monthly saver March 07 and put full amount in. Do you think that this account is better than saving in an ISA? Or do you think i should wait till march and put £3000 of the savings in a mini ISA in time for getting a new ISA in April. Any ideas

Ta

Mark

chesky369

Do you have an ISA at the moment mckain?

Biggles

mckain wrote: »

Do you think that this account is better than saving in an ISA?

Apples & oranges. This account is for someone who wants to make regular monthly savings and it does a good job at that, paying 6.40% after basic rate tax (slightly more than a mini ISA).

An ISA is for putting a lump sum in for the long term to benefit from tax-free savings. When the monthly saver is finished, you will want a home for your £3,000+ and an ISA would be the best bet then. Right now, leave things be unless you are saying you have more funds now that you'd like to invest, over and above your £250pm in the monthly saver, in which case by all means start up an ISA now.

mckain

Thanks for the advice guys. I have an ISA started 3 years ago but i havent put anything in it and took money out. Think i have £37. Is this still active?

Biggles

mckain wrote: »

Thanks for the advice guys. I have an ISA started 3 years ago but i havent put anything in it and took money out. Think i have £37. Is this still active?

If you've not put anything in it recently, you can put up to £3,000 in this tax year. If there's already money in it, it should still be active but you may have to sign a new declaration for the current year. But check that the rate's still competitive (see the ISAs board).

[Deleted User]

Net interest received today of £145.80. :beer:

TonyT_3

I've had this account since December last year and it was great until the last base rate rise which pushed the interest rate of my offset variable rate tracker mortgage to 6.45%.

Given I'm a basic rate taxpayer I'm thinking it would be better now to stop paying into the savings account and move all the money back into my current account to offset the mortgage. Does that sound like the right thing to do?

YorkshireBoy

TonyT wrote: »

I've had this account since December last year and it was great until the last base rate rise which pushed the interest rate of my offset variable rate tracker mortgage to 6.45%.

Given I'm a basic rate taxpayer I'm thinking it would be better now to stop paying into the savings account and move all the money back into my current account to offset the mortgage. Does that sound like the right thing to do?

The equivalent gross rate on your offset mortgage account is currently 8.06% (6.45% x 100 / 80).

As interest rates are forecasted to rise again (my own view is two 1/4 point increases are coming, with one of them as early as next month), and the 8% LTSB rate is fixed, then personally I'd abandon the LTSB monthly saver and use the offset account instead.

However, if you're shortly to come into money, or have plans to move away from an offset product, then because you have the 2 year LTSB product you may want to keep it open.

carpy

anyone know if you have to keep a current account open with them and fund the regular saver from there for the duration of the 2 years?

i want to change my current account to halifax to get a better rate + £100