Is it possible to do this?

d712

Hello

I have a Lloyds current account that provides a tiered rate of interest on the entire balance. 3% if the balance is between £3000 and £5000, 4% if the balance is between £5000 and £6000.

The condition is that you must pay in at least £1000 each month.

Would it be possible to have two of these accounts in the same name where you get paid your salary in one account (which qualifies you for the interest) and then transfer £1000 into the second account thereby getting interest off both accounts?

Theoretically you could have any number of accounts where you are transferring money from one to the other and qualifying for the interest for all of them.

Is this possible?

Thanks

Ed-1

d712 wrote: »

Hello

I have a Lloyds current account that provides a tiered rate of interest on the entire balance. 3% if the balance is between £3000 and £5000, 4% if the balance is between £5000 and £6000.

The condition is that you must pay in at least £1000 each month.

Would it be possible to have two of these accounts in the same name where you get paid your salary in one account (which qualifies you for the interest) and then transfer £1000 into the second account thereby getting interest off both accounts?

Theoretically you could have any number of accounts where you are transferring money from one to the other and qualifying for the interest for all of them.

Is this possible?

Thanks

Yes. You can have up to 3 Lloyds Vantage accounts. Opening further accounts now however would only get you a maximum of 3% AER on between £3000 and £5000 on the new accounts as the 4% tier offer expired last October for new accounts (and ends this October for existing accounts). You can transfer £1000 in and straight back out again to satisfy the interest conditions.

anamenottaken

d712 wrote: »

Hello

I have a Lloyds current account that provides a tiered rate of interest on the entire balance. 3% if the balance is between £3000 and £5000, 4% if the balance is between £5000 and £6000.

The condition is that you must pay in at least £1000 each month.

Would it be possible to have two of these accounts in the same name where you get paid your salary in one account (which qualifies you for the interest) and then transfer £1000 into the second account thereby getting interest off both accounts?

Theoretically you could have any number of accounts where you are transferring money from one to the other and qualifying for the interest for all of them.

Is this possible?

Thanks

With LTSB internal transfers count towards the £1K. They allow you to have 3 of the Vantage accounts - but the 4% expires this autumn on that one account and accounts opened now have only up to 3% (on up to £5K). Your present account will also revert to that level on 1 November.

d712

Thanks for the responses.

So at the moment it is possible to have £18000 spread over 3 Vantage accounts and receive 4% on the whole £18000?

Ed-1

d712 wrote: »

Thanks for the responses.

So at the moment it is possible to have £18000 spread over 3 Vantage accounts and receive 4% on the whole £18000?

It's only possible to have 3 accounts all earning 4% on between £5000 and £6000 if you opened all 3 accounts when the 4% offer was on (i.e. September/October 2012). You only opened 1 at that time. You can no longer get 4% on any new accounts.

anamenottaken

d712 wrote: »

Thanks for the responses.

So at the moment it is possible to have £18000 spread over 3 Vantage accounts and receive 4% on the whole £18000?

So, at the moment, the maximum on which to earn the Vantage interest is £16K (£6K + £5K +£5K).
AER 4% on the £6K account and 3% AER on the other two.

As mentioned earlier, the 4% disappears on 1 November and the maximum balance for interest (3%) returns to £5K on your present account.

Gromitt

But don't forget you can have 3xBoS accounts, giving you 3% on £15K as well

richardmk

For the 4% you also have to have two active direct debits on the account http://www.lloydstsb.com/legal/current-accounts/vantage.asp

Archi_Bald

richardmk wrote: »

For the 4% you also have to have two active direct debits on the account http://www.lloydstsb.com/legal/current-accounts/vantage.asp

Yep, but even if you did have these, you cannot apply now for the 4% one.

The only option for new applications is currently the 3% one (£3K- £5K), which doesn't require any DDs (but still needs £1K deposit a month).