Club Lloyds Monthly Saver interest calculation

thegreenmonkey

Hi all

Main question:
Can anyone confirm if interest is calculated daily for this account - i.e. does the date of the desposit matter?

If you have more time:
£200 has to be deposited by the 25th of each month. Would I receive the same interest if I deposited £200 on the 24th of each month compared to depositing £200 on the 26th of each month?

I've called Lloyds several times and received different information

Thanks in advance

YorkshireBoy

I'm not aware of an account that does not calculate interest daily.


Doesn't the account run for 12 months from the date of the first deposit? If so it wouldn't matter when you made the deposit (although with some of these accounts you can shorten the gap between the first and second payment if you open towards the end of the month...and they demand a deposit once per calendar month).


Going on your £200 per month plan, and assuming the same date each month, your interest for the year will be:


£2,400 x 4% / 12 x 6.5 = £52 gross (or £41.60 if you're a BR tax payer)

thegreenmonkey

YorkshireBoy wrote: »

I'm not aware of an account that does not calculate interest daily.


Doesn't the account run for 12 months from the date of the first deposit? If so it wouldn't matter when you made the deposit (although with some of these accounts you can shorten the gap between the first and second payment if you open towards the end of the month...and they demand a deposit once per calendar month).


Going on your £200 per month plan, and assuming the same date each month, your interest for the year will be:


£2,400 x 4% / 12 x 6.5 = £52 gross (or £41.60 if you're a BR tax payer)

Thanks YorkshireBoy for your help. Lloyds have indeed advertised £52.21 gross after 12 months.

- Get an interest rate of 4.00% gross/AER fixed for the first 12 month.
- The standing order deposit must reach your account by the 25th of each month for it to be counted as that month's payment.
- The interest is calculated on the balance of the account each month.

http://www.lloydsbank.com/savings/club-lloyds-monthly-saver.asp

I'm really confusing myself :rotfl:

(And sorry, I should have posted this in the Savings & Investments section)