Is Lloyds closing their Vantage accounts?

anotheruser

So Lloyds have turned a top interest rate paying current account into an account that pays no interest in the space of a few months?

I was going to hang on to the account and put up with the low limit but now TSB looks to be the place to go without any silly direct debit requirement.

innovate

Vantage has been available for years. Obviously Lloyds have now decided to replace it with the Club Lloyds, with a pretty good interest rate but sadly, for us, lower limits. It was surprising Lloyds did keep the Vantage accounts for as long as they did.

eskbanker

anotheruser wrote: »

So Lloyds have turned a top interest rate paying current account into an account that pays no interest in the space of a few months?

No, they will be lowering the interest rate to 1.5%!

Thrugelmir

kar999 wrote: »

I can see shed loads of money leaving Lloyds come July.

Lloyds no longer have a need for the money. Switching elsewhere will result in further downward trends.

Too much cash chasing an investment return.

First real sign of change for current accounts as well. A £5 fee if £1,500 isn't paid in during the month. Considering top rate of interest is only paid between £4k and £5k. Appears to be blocking the old tricks.

Gromitt

I was considering borrowing more money than I needed for my mortgage as the interest was less than I could get via my range of current accounts (1.94% compared to 2.4% across LBG). I'm glad I didn't now as I would have been pleading them to make an overpayment!

Consumerist

innovate wrote: »

yep, definitely. It is probably what they want. Get rid of people who are half clever with their money.

I can produce any number of DDs for an account that it is worthwhile having, but Lloyds Vantage will, sadly, no longer be in that category come July, so my Vantage money will exit Lloyds. I suppose many people will use the money for an ISA, or funnel it into some other accounts that pay way more than 1.5%.

Their Club Lloyds @ up to 4% on up to £5K might be worth the hassle of the two DDs required. Minimum £1,500 pm deposits might be a bit of extra hassle for some though.

innovate

Consumerist wrote: »

Minimum £1,500 pm deposits might be a bit of extra hassle for some though.

I agree, it will put of some people, particularly those who think it must be all paid in in one go. It is probably designed to put them off, and to give the account some sort of artificial exclusivity. Nobody reading the MSE forum should not see right through it.

Chris2000

Thrugelmir wrote: »

Lloyds no longer have a need for the money. Switching elsewhere will result in further downward trends.

I suspect it suits LBG just fine to reduce Lloyds' market share of current accounts, by shedding some that weren't really used as current accounts, and grow TSB's market share to demonstrate competition.

Politicians are making noises again about doing more to split up the big banks (while missing the point that 3% Vantage accounts should have a large market share if competition is working properly).