lloyds online saver - Free £10(gross) if deposit £1K

thumshie

See:
http://www.lloydstsb.com/legal/savings_legal/online_saver_page.asp

Online Saver £10 Interest Offer

1) Open to Lloyds TSB current account customers aged 16 or over with a permanent UK address, who don’t already have an Online Saver excluding employees of the Lloyds TSB Group of companies.
2) An Online Saver account must be opened between 4 June 2007 and 30 June 2007 using either Telephone Banking or Internet Banking.
3) £1,000 must be paid into the Online Saver account within 7 days of opening.
4) The £10 interest offer payment will be made for the first Online Saver that you open either in your name or with someone else.
5) We may withdraw the offer at any time and this offer cannot be used in conjunction with any other offer.
6) Tax will be payable on your £10 interest payment on the same basis as the interest you receive on your Online Saver account. For example if you receive interest net you will receive £8.
7) We will credit your Online Saver account within 30 days of the end of this offer.

Not bad for keeping £1k in there for 30 days???

ED

Thanks, thumshie.

Particularly helpful text from Lloyds TSB site :

''If you’re registered for Internet banking you can open your online saver account in just a few clicks without the need to fill in any forms – there’s no hassle and no need to queue in a branch.''

10 out of 10 to Lloyds re account opening for existing customers being the most speedy application process ever experienced by me - it took me literally seconds! (I read the Terms + Conditions before log-in.)

Milarky

thumshie wrote: »

See:
http://www.lloydstsb.com/legal/savings_legal/online_saver_page.asp

Not bad for keeping £1k in there for 30 days???

Yes I've just worked this out. The introductory rate (which lasts 12 months) is only 5.25% on balances over £250. However, keeping £1000 in there for a year that's still '6.25%' (£10 = 1%) - and for 30 days it's 'x12' (you wouldn't think so, but there you are) - or about '17.25%' gross... '13.8%' net. Plenty of time to get in and out...

(It's just occurred that going for monthly interest (0.25% less) is probably the better option for anyone intending to empty the account after a month - i.e you draw out all but £1 probably on 1st August - the 30 days having passed in that time and any interest made up for one and a bit months)

ED

At 5.25% I aim to actually use the Online Saver (while 1st year bonus lasts, + according to possible rate changes) - useful to feed (via Lloyds cheque account) monthly saver accounts with Lloyds itself, with Loughborough BS + Hanley Economic BS. Folks, am I missing out on any others?

My acceptance of Lloyds modest rate is because it exceeds the 5.13% my funds currently receive in Coventry First account of a building society. Keeping some funds in Lloyds OS account will also save some queing urgently the day before each payment. Instead, I can make an online internal transfer.

ashcarrot

any one know if this works if you already have an online saver and open another for this offer?

thumshie

ashcarrot - i think point 1 in the quote in post #1 implies it's not open to those with an online saver already..

ashcarrot

doh - shows its still far too early for me to be up seeing as i missed that.

someone

ashcarrot wrote: »

any one know if this works if you already have an online saver and open another for this offer?

you could close the account and open a new one

ED

My interpretation of Point 4 in Post # 1 (taken from Lloyds site, re the £10 offer) is that this applies only to a customer's debut Lloyds Online Saver :

''4) The £10 interest offer payment will be made for the first Online Saver that you open either in your name or with someone else.''

Unless you work for Lloyds, someone, and know differently...?

littlevet1

Can I deposit the £1000 then withdraw it again after a few days - or does it have to be in the account for the full 30 days? Also is the introductory bonus rate only payable on accounts that are open for the full 12 months (i.e. if I close the account after bagging my tenner would I lose the bonus rate?)

(It's just occurred that going for monthly interest (0.25% less) is probably the better option for anyone intending to empty the account after a month - i.e you draw out all but £1 probably on 1st August - the 30 days having passed in that time and any interest made up for one and a bit months)

Surely if you want to empty the account after getting the £10, it would be better to close it, then interest will be paid on any money upon closure, so why miss out on the 0.25% by selecting monthly interest only? (hope I've got that right)

Milarky

littlevet1 wrote: »

Surely if you want to empty the account after getting the £10, it would be better to close it, then interest will be paid on any money upon closure, so why miss out on the 0.25% by selecting monthly interest only? (hope I've got that right)

Maybe I'm just too cautious - but I was thinking that differential interest (on £1000 - 1/48th of 1 per cent - or 2p per month was nothing to miss). I seem to recall that people closing their cahoot savings accounts when they suddenly became uncompetitive complained that they were not being paid closure interest until the anniversary of the account opening. (That's the only case I've heard of though.)

Something I can't understand though is why LTSB insists on calling it 'interest' as it is lump sum paid after 30 days. Egg gives you £10 for opening it's EMM - so that becomes 'tax free'. Rebates are 'tax free' too. But as with the 'save the change' incentive the 'rebate' here is treated as income and taxed. Does anyone understand the distinction and the reasoning behind that?