New Lloyds Club current account

Wurzel_Gubbage

Hi

Can anyone advise on the following. My interest for 2014/15 (Lloyds Club Account) has been paid to me as Gross Interest. As I'm a taxpayer I would have expected this to be paid as Net Interest.

Anyway, I phoned Lloyds tonight and the Customer Services person stated that the Gross Interest was correct as part of the Terms and Conditions of the account and I would need to sort the Tax part out myself with HMRC.

I think the advise I was given was incorrect. Can anyone confirm that the interest should have been paid as Net Interest?

Thanks

mary

Mine was paid net, and I believe they are automatically obliged by law to deduct tax unless you have signed an R85 telling them not to at some point. I think this is their mistake.

xylophone

An error - http://www.lloydsbank.com/assets/media/pdfs/current-accounts/clublloyds_terms%20and%20conditions.pdf


"Explanation of Terms

Net rate is the contractual rate of interest payable after the deduction of income tax at the rate specified by law (currently 20%)

Gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified
by law.

You can register your account to receive interest gross if you are unlikely to pay tax on your savings income."

afmfifgh

Archi_Bald wrote: »

Once it matures, it automatically 'morphes' into an easy saver. If it still shows as Club Lloyds Monthly saver, it has not matured yet.

I closed my easy saver in Branch but people here posted that you can close an easy saver online. There's no need/rush to close an easy saver though as you can transfer all your money out online.

Once your Lloyds Monthly Saver has changed into an easy saver, you can also immediately open a new one.

Frogletina wrote: »

It should be an easy saver account now and no longer show that it is a club lloyds monthly saver.

I just did a transfer of the final balance out of the easy saver account. There is no necessity to close it to access the money and it can be closed at a later date.

If it hasn't changed to an easy saver account I would advise that you ring Lloyds to check why.

frogletina

Thanks for the replies - it has changed to an Easy Saver but for myself and others it may not be immediately obvious, the reason being if you have renamed the account like I have. So although it has changed to an Easy Saver it is still showing my changed account name, part of which is Lloyds Club Monthly Saver - xxxxxxx

I have transferred the money all out but would sooner close accounts down that I no longer use as I have enough to keep track of as is chasing interest rates. So what I ended up doing as I couldn't find any way of doing it online was I phoned the internet banking helpline and they took a few details and are sending a form out to close the account which I need to sign and return and then the account will be closed. I didn't ask about doing it online and they didn't offer.

It saves having to get to a branch which is far from easy.

I was as you have said, been able to open a new one straight after the first one matured.

dbarcl10

Hi, I opened a Club Lloyds current account online for my parents on 27th June and immediately funded it with £5,000 - they got their first wave of interest on the 2nd July.

I am aware that Lloyds give a grace period for the direct debits to be set up and first payments taken, but does anyone know how long the grace period is? Both direct debits were requested to be changed on 11th July but only one appears to have been set up on Lloyds systems, and neither will take a payment until August, meaning that there is a possibility that only one DD will be set up during July and no payments taken by DD - minimum funding requirements have already been met.

Will they still receive interest for July, or will the grace period have been used in June?

Thanks for any help!

plunt

to be sure you could set up a tesco saver and create 2 quick direct debits.

YorkshireBoy

plunt wrote: »

to be sure you could set up a tesco saver and create 2 quick direct debits.

With only 6 working days left in July I suspect there won't be time...even if the account was already up and running.

Dird

plunt wrote: »

to be sure you could set up a tesco saver and create 2 quick direct debits.

YorkshireBoy wrote: »

With only 6 working days left in July I suspect there won't be time...even if the account was already up and running.

If that's the case I'd be happy to set up a DD to my Tesco account
Alternatively, OP can just set up a euromillions DD for £2/month

Ed-1

Dird wrote: »

If that's the case I'd be happy to set up a DD to my Tesco account

I wouldn't do that - the reason Tesco gave me for closing the accounts was that I had direct debits set up to a third party which was forbidden in their terms and conditions.

Dird

Ed-1 wrote: »

I wouldn't do that - the reason Tesco gave me for closing the accounts was that I had direct debits set up to a third party which was forbidden in their terms and conditions.

How would they know what is/isn't third party?