Lloyds Vantage interest rates drops

kar999

Archi_Bald wrote: »

I said the tax-
.... there are still plenty of 4, 5 and 6% accounts that beat just about any cash ISA rate you can find these days.

... which is why I maxed out our 7 vantage accounts.

I have to agree that Cash Isas have been very poor for the last few years. I've used all my ISA allowances for non-cash Stocks and Shares ISA's and got 20%+ returns... albeit with a higher risk profile. I will probably do the same for most of my Vantage money.

Wheres_My_Cashback

typistretired wrote: »

I expect quite a few of us on here will be closing the Lloyds Vantage Accounts come July.............

............or retaining them with £0.00 to use them as a switching platform to other accounts to gain incentives

Cryptic_Sun

The way my accounts are currently set up, I have two Vantage accounts with 5k in each. 1k switches between the accounts each month and yields about £9.50. This is obviously coming to an end with the new conditions.

What would be the optimal strategy from here, with the £10,000? I consider the money 'savings' and never dip into it but I always want access to it, so I'm looking for a current account set up similar to the two Vantage accounts. I'm considering opening up the Halifax account for 5k of it (which would gain £100 from the switch plus £5 per month) and opening a First Direct account for the other 5k (another £100 switch bonus) and transferring money to and from these two accounts as required each month. Is this a sound approach or would another set up be more beneficial?

Wheres_My_Cashback wrote: »

............or retaining them with £0.00 to use them as a switching platform to other accounts to gain incentives

Forgive my ignorance, how does that work exactly? Say I move £5000 out of my Lloyds Vantage account into a Halifax account that offers a £100 switch bonus. I leave £1 in the vantage account and don't close it. Then, in six months, a (for example) Barclays current account launches that offers a switch incentive. Do I then move some money from the Halifax account back in to the dormant vantage account just so I can switch to the new Barclays account? One of the stipulations to qualify for the £100 switch to Halifax is that I close the account where the money is being transferred from.

thegreenmonkey

Cryptic_Sun wrote: »

The way my accounts are currently set up, I have two Vantage accounts with 5k in each. 1k switches between the accounts each month and yields about £9.50. This is obviously coming to an end with the new conditions.

What would be the optimal strategy from here, with the £10,000? I consider the money 'savings' and never dip into it but I always want access to it, so I'm looking for a current account set up similar to the two Vantage accounts. I'm considering opening up the Halifax account for 5k of it (which would gain £100 from the switch plus £5 per month) and opening a First Direct account for the other 5k (another £100 switch bonus) and transferring money to and from these two accounts as required each month. Is this a sound approach or would another set up be more beneficial?




Forgive my ignorance, how does that work exactly? Say I move £5000 out of my Lloyds Vantage account into a Halifax account that offers a £100 switch bonus. I leave £1 in the vantage account and don't close it. Then, in six months, a (for example) Barclays current account launches that offers a switch incentive. Do I then move some money from the Halifax account back in to the dormant vantage account just so I can switch to the new Barclays account? One of the stipulations to qualify for the £100 switch to Halifax is that I close the account where the money is being transferred from.

Have you maxed out the other current accounts offering 3%+ credit interest? It's a waste to you let your money sit in the accounts you mention.

Archi_Bald

Cryptic Sun, you would not have any dormant Vantage accounts since they would have been closed as part of your switches to Halifax and First Direct. Neither of them would pay you a joining incentive unless they can close your old accounts.

Leaving £5,000 in a Halifax account sounds a sinful waste....by all means, do switch to it and get the monthly fivers, but there is no need to leave the money in there. Much better to keep it in a Club Lloyds.

Similar for First Direct - complete waste to leave £5K in there. Their Regular Saver is of interest though. As could the Club Lloyds monthly saver be. And then there are the 2 TSB Plus accounts, and/or places such as the Newcastle BS Big Home Saver.

Cryptic_Sun

thegreenmonkey wrote: »

Have you maxed out the other current accounts offering 3%+ credit interest? It's a waste to you let your money sit in the accounts you mention.

I haven't. I'm rather inexperienced with this kind of thing and thought I was getting a decent return on the 10k per month (nearly £20). You're basically implying a multi bank set up would be the most lucrative?

Archi_Bald wrote: »

Cryptic Sun, you would not have any dormant Vantage accounts since they would have been closed as part of your switches to Halifax and First Direct. Neither of them would pay you a joining incentive unless they can close your old accounts.

Leaving £5,000 in a Halifax account sounds a sinful waste....by all means, do switch to it and get the monthly fivers, but there is no need to leave the money in there. Much better to keep it in a Club Lloyds.

Similar for First Direct - complete waste to leave £5K in there. Their Regular Saver is of interest though. As could the Club Lloyds monthly saver be. And then there are the 2 TSB Plus accounts, and/or places such as the Newcastle BS Big Home Saver.

Club Lloyds is attractive but the two DD's a month puts me off. I only have three DD's and one standing order to my name (Phone, internet, gym and standing order for rent, I pay everything else up front). To qualify for the Halifax £5 I need to reroute two of those DD's. I could use a Club Lloyds if they accept a SO as a DD. Still, I do prefer accounts without the DD requirement.

Thanks for the responses btw :beer:

Mr_Goodkat

Cryptic_Sun wrote: »

The way my accounts are currently set up, I have two Vantage accounts with 5k in each. 1k switches between the accounts each month and yields about £9.50. This is obviously coming to an end with the new conditions.

What would be the optimal strategy from here, with the £10,000? I consider the money 'savings' and never dip into it but I always want access to it, so I'm looking for a current account set up similar to the two Vantage accounts. I'm considering opening up the Halifax account for 5k of it (which would gain £100 from the switch plus £5 per month) and opening a First Direct account for the other 5k (another £100 switch bonus) and transferring money to and from these two accounts as required each month. Is this a sound approach or would another set up be more beneficial?




Forgive my ignorance, how does that work exactly? Say I move £5000 out of my Lloyds Vantage account into a Halifax account that offers a £100 switch bonus. I leave £1 in the vantage account and don't close it. Then, in six months, a (for example) Barclays current account launches that offers a switch incentive. Do I then move some money from the Halifax account back in to the dormant vantage account just so I can switch to the new Barclays account? One of the stipulations to qualify for the £100 switch to Halifax is that I close the account where the money is being transferred from.

Both Halifax and First Direct current accounts pay 0% interest so it would be a bad home for £10k


To get the Halifax fivers you need to pay out two direct debits each month.


First Direct is good for the regular saver and interest free OD of £250 but not a place to keep significant funds.


If you have not maxed out the other high interest paying bank accounts then you could:
Club Lloyds - 4% on £5k but must pay in £1500 per month to avoid £5 fee and pay out two direct debits to get the interest, you can also feed the regular saver £400 a month at 4%
TSB Plus x 2 - £2k x 3 = £4k at 5% £500 monthly funding required
Nationwide Flex Direct - 5% on £2.5k for 12 months £1000 monthly funding required
Santander 123 - 3% on £3-£20k plus cash back on qualifying direct debits - costs £2 per month and must be funded by £500 of external money and two dd's set up
BOS - still offering vantage accounts 3% on £5k - £1k per month funding required


If you don't have them already with £10k savings I would:
1x Halifax for £100 = £5 per month
Club Lloyds for 4% on £5k
2 x TSB 5% on £4k

Mr_Goodkat

Cryptic_Sun wrote: »

I haven't. I'm rather inexperienced with this kind of thing and thought I was getting a decent return on the 10k per month (nearly £20). You're basically implying a multi bank set up would be the most lucrative?



Club Lloyds is attractive but the two DD's a month puts me off. I only have three DD's and one standing order to my name (Phone, internet, gym and standing order for rent, I pay everything else up front). To qualify for the Halifax £5 I need to reroute two of those DD's. I could use a Club Lloyds if they accept a SO as a DD. Still, I do prefer accounts without the DD requirement.

Thanks for the responses btw :beer:

Both Halifax and Lloyds require two DDs to be paid out each month but you can easily set up for example a Tesco savings account and fund it with £1 a month from your Halifax account and £1 a month from your Lloyds account

Archi_Bald

Mr_Goodkat wrote: »

Both Halifax and Lloyds require two DDs to be paid out each month but you can easily set up for example a Tesco savings account and fund it with £1 a month from your Halifax account and £1 a month from your Lloyds account

One Tesco Internet Saver and one Tesco Instant Access Savings account will solve the "2 DD needed" conundrum on a range of current accounts.

Funkyfreddy

Cryptic_Sun wrote: »

..
Club Lloyds is attractive but the two DD's a month puts me off. I only have three DD's and one standing order to my name (Phone, internet, gym and standing order for rent, I pay everything else up front). To qualify for the Halifax £5 I need to reroute two of those DD's. I could use a Club Lloyds if they accept a SO as a DD. Still, I do prefer accounts without the DD requirement.

Thanks for the responses btw :beer:

Plenty of options in other threads as to options for DD's without making use of any of existing ones.

Open a Tesco Internet Saver - allows multiple DD's to be set up and move a £1 or so from Club LLoyds or Halifax each Month.

Do you have a PayPal account ? As above allows multiple accounts to be "linked" by DD so again just pull a £1 each month.

That would be two direct debits sorted and you keep your own money. Other options though.

FF