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

p1an0player

Milarky wrote: »

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?

I would also like to understand it.

In January I opened a Lloyds current & savings account, because of Save the Change. I have to complete a tax return for the year ending April 2007, and I asked two different branches of Lloyds to provide a tax deduction certificate. Both branches were insistent that it wasn't possible as I had not paid any tax in the year ending April 2007. But I know my first STC payment was paid in March and had £10 "tax" deducted..

ED

Looking forward to input, here, with ideas of why Lloyds TSB refer to the £10 as 'interest'.

Payable within 30 days of the date the Offer ends (30 June), so expect the credit (minus £2 tax, if applicable) on 30 July. Terms state :

''7) We will credit your Online Saver account within 30 days of the end of this offer.''

ED

Lloyds TSB have sent a mailshot promoting the Online Saver @ 5.25% gross (including 0.60% first year bonus). Key points for me are :

- ''allows you to transfer money to and from your current account easily and with little or no delay on your interest''

- ''with quick and easy access, you don't have to worry about your money being locked away''

This shows Lloyds fully understand how to offer an account more competitive than those of HSBC, Alliance + Leicester, etc, regarding instant access without interest penalty. Yes, I'd prefer a rate of c. 5.85%, but the Lloyds OS could be useful for a modest portion of savings, ready for feeding bills - or the 8% Monthly Saver.

shazkhan111

does any1 who works for lloyds know whether i can open another online saver to get the £10...too much hassle to close one then reopen especially for £10

doingwhatican

I have opened lots of the online saver accounts. I always open a new one when the bonus period finishes. I have several of them open at any one time as I like to have my little pots of money for my little things - like car maintenance account, holiday account etc etc.
I have opened a new one today and deposited the 250 plus 1000, so I hope to get my 8 quid in 30 days. I love it, 8 quid for 1 minutes work, and a slightly better interest rate.
The only real hassle with these accounts is you have to write to Lloyds to get them closed as you can't close them online.

Innys

littlevet1 wrote: »

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?)



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)

Erm...has anyone answered the first part of littlevet's question? Can you deposit the £1k so it is there on the 30th of June and take it out again on, say the 3rd of July?

The Ts & Cs state that the interest is credited, net of tax at the end of July. Fine, but to receive this interest, does the £1k have to remain in the account until then?

kanchhelskis

hi guys and lasses, i put 500 pounds into my online saver account a tomorrow i will put in another 500 pounds. will i get the 10 pound bonus for this or do i need to put in 10000 pounds in 1 go? thanks in advance.

Milarky

kanchhelskis wrote: »

hi guys and lasses, i put 500 pounds into my online saver account a tomorrow i will put in another 500 pounds. will i get the 10 pound bonus for this or do i need to put in 10000 pounds in 1 go? thanks in advance.

Not necessary. See here:
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.
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.

So their payment of £10 should be made by 29th July by my reckoning. It isn't even necessary to leave £1000 in there any period of time as I read this - you could pay in £500 - transfer it into your current account (as I think a transfer still qualifies as one of the methods of 'paying in') and transfer it straight back. Bingo. 2 times £500 during the 30 days from opening and you qualify

[Anyone read this differently?]

Compound_2

Does the opening balance count as 'paying in' or do you need to pay in £1000 after opening with £250, i.e. £1250 in total? If the opening £250 counts, extending on Milarky's example you could transfer the £250 to the current account and back 3 times, to reach the £1000.

thumshie

My £8 got paid yesterday...time to close the account!!