Hellppp . Club Lloyds, TSB Plus .. Nationwide FlexDirect

milton19700

All .. apologies in advance - I know that this info is on the forum but struggling to read through the reams of information.

I am trying to set up a few new current accounts to take advantage of savings rates (& in anticipation of the reduction in Lloyds Advantage rates ...)

Could anyone confirm understanding ..


1. Club Lloyds Account
This needs £1,500 pm deposit (appreciate that this can be withdrawn immediately) to avoid the £5 pm account charge plus if you want interest paid on savings (4% on £5k) you need to set up 2 x DDs ?

Only one account per customer (+ 1 for Joint)

QUESTION: I am planning to set up 2 DDs from Tesco Savings (1 x Tesco Instant Access + 1x Tesco Internet Saver) - will this meet the 2 x DD requirement or do they need to be from different organisations ? - If not can anyone suggest an alternative DD broker ?

2. TSB Plus
This need just £500 pm deposit but no DDs ... but paperless statements for interest to be payable (5% on £2k)

Two accounts allowed per customer

3. Nationwide Flex Direct
This requires £1,000 pm deposit but no DDs - interest is 5% upto £2,500 for initial 12 months.

Multiple accounts allowed per customer but 5% only paid on one account.


Have I got this correct ...

Thanks in advance

ColdIron

Pretty much spot on, not sure about the 2 x Tesco DDs though

YorkshireBoy

milton19700 wrote: »

1. Club Lloyds Account
This needs £1,500 pm deposit (appreciate that this can be withdrawn immediately) to avoid the £5 pm account charge plus if you want interest paid on savings (4% on £5k) you need to set up 2 x DDs ?

It's not enough to "set up" the DDs (as with Santander, for example), they have to pay out each calendar month.

guitarman001

What do you mean no DDs for TSB Plus? Are you saying I can't transfer £500 in and out every month like I do with my Vantage accounts?? If so that's a bummer because I just opened the account...

YorkshireBoy

guitarman001 wrote: »

What do you mean no DDs for TSB Plus?

There's no requirement to switch/set up/pay out any DDs on the TSB Plus account in order to receive the 5% AER interest.

milton19700

Yes thanks YorkshireBoy .. Understand the set up vs active dd

Any thoughts on the 2 dd via Tesco Bank?

YorkshireBoy

milton19700 wrote: »

Yes thanks YorkshireBoy .. Understand the set up vs active dd

I wasn't sure from your wording, that's why I mentioned it.

Any thoughts on the 2 dd via Tesco Bank?

I think it would work, with one from an Internet Saver and the other from an Instant Access Savings Account...but it's not my money I'm risking!


If you don't have to test it live until July, then dump £4K in for the last 2 or 3 days of the monthly billing period and see if your 2 Tesco DDs generate the interest payment. However, Lloyds seem to be waiving the DD requirement for people who open mid-way through a monthly billing period* (as they do with the £5 fee if you don't fund) so you might want to try it for 2 months before committing your cash for an entire month!




* Check out innovate's recent posts on the matter.

ColdIron

YorkshireBoy wrote: »

However, Lloyds seem to be waiving the DD requirement for people who open mid-way through a monthly billing period* (as they do with the £5 fee if you don't fund)

I phoned them about this, regarding the DDs, and CS's position was that they have to pay out even in the first month, whether that happens is reality is another matter

BeachNut

ColdIron wrote: »

I phoned them about this, regarding the DDs, and CS's position was that they have to pay out even in the first month, whether that happens is reality is another matter

Not according to the website or my experience. I opened mine on 31 Mar and recieved 1 days interest credited on 1 April, clearly without any dds leaving the account. I expect all conditions will have to be met in April.

The CS may have been thinking of the first month since your account was opened, but that is misleading since the account works on calendar months, oddly running from 2nd to the 1st of the next month.

innovate

The T&Cs do stipulate that you must have had the 2 paying DDs in order to get interest. However, like you, I also did get a few pennies interest for March, despite not having had my DDs showing on the account at the time.

soulsaver

guitarman001 wrote: »

What do you mean no DDs for TSB Plus? Are you saying I can't transfer £500 in and out every month like I do with my Vantage accounts?? If so that's a bummer because I just opened the account...

Standing Orders not DDs ?