Account opening question (when specific funding is required)

aliasojo

I'm a 'Homemaker', a SAHM who gets paid gross interest.

I was looking at the Lloyds account, clearly the funding requirement can be met via various methods without too much difficulty but as I would want to get interest paid gross on this account, I couldn't exactly say during the application that my monthly income was £1500! Even although I could take this amount from the total household budget to transfer through the account.

If I say my own monthly income is less than £1500 which it obviously is, then wont that automatically preclude me from applying? Or my application from being successful to be more exact?

Edit: Just want to be clear that I don't want to be deceitful in any way during the application, it's just that some accounts are stricter than others as to what their criteria is and I don't want to be applying for something that I wont get, iyswim.

karlie88

aliasojo wrote: »

I'm a 'Homemaker', a SAHM who gets paid gross interest.

I was looking at the Lloyds account, clearly the funding requirement can be met via various methods without too much difficulty but as I would want to get interest paid gross on this account, I couldn't exactly say during the application that my monthly income was £1500! Even although I could take this amount from the total household budget to transfer through the account.

If I say my own monthly income is less than £1500 which it obviously is, then wont that automatically preclude me from applying? Or my application from being successful to be more exact?

They'll think that you'll have to pay the £5 fee if you're not able to fund the account with £1500.

But of course, you and I know that you'll be able to pay it no problem.

Whether that's with 1 x £1500 payments or 1500 x £1 payments; and everything in between.

I helped me ma apply for this account; she is a homemaker but has a decent amount of savings. We put £500 for monthly income and she got accepted.

aliasojo

Ah, I was forgetting about the fee. I was focusing too much on the £1500 thing.

Thanks.

Edit: I was clearly overthinking things this morning. Account now opened and D/D's sorted from good old Tesco.

B_G_B

I’m a homemaker as well. Income well below £1500 pm. I have a Club Lloyds current account. Online "upgrade" from Vantage. No problem at all. Also Club Lloyds monthly saver. I can’t remember the questions asked about income but I think I gave Salary as £0 and other income as £440 pm (DLA) in my case.
R85 tax exempt on interest.


The only time that my income has been questioned was when applying for Yorkshire bank "Currrent Account Direct" by phone. The agent on the phone pointed out to me that my income was well below the funding requirement (£1000). I said that it would be funded from another account. Again, no problem.

aliasojo

Is it usual to send a completed R85 direct to the tax office rather than the bank concerned?

Any other account I have opened with other banks have required me to send back to whatever bank I have opened the account with but lloyds want me to send the form direct to the tax office.

How will they know to apply the gross interest then? I've just done this with TSB & BoS, both of whom needed the form given back to them, which I thought was more usual?

karlie88

aliasojo wrote: »

Is it usual to send a completed R85 direct to the tax office rather than the bank concerned?

Any other account I have opened with other banks have required me to send back to whatever bank I have opened the account with but lloyds want me to send the form direct to the tax office.

How will they know to apply the gross interest then? I've just done this with TSB & BoS, both of whom needed the form given back to them, which I thought was more usual?

Lloyds and TSB allow you to register for gross interest via Telephone Banking.

aliasojo

Not according to the chap I just spoke to.

Just checked with tax, they say to send form to bank. Think the chap on the phone wasn't correct, will call them again.

karlie88

aliasojo wrote: »

Not according to the chap I just spoke to.

Just checked with tax, they say to send form to bank. Think the chap on the phone wasn't correct, will call them again.

As you've said, the 'chap' was incorrect.

Hopefully, you'll be put through to someone more competent.

aliasojo

Ok just called back. First chap was indeed wrong.

Second chap confirmed it can be done by phone but couldn't do it at present because account has only just been opened an hour ago and he can't go through all the procedure because the security hasn't been finalised (I need to wait for some code to be sent out within 7 days, until then my account is not fully functioning despite being able to see it online and pay into it).

He reckoned it was just as quick to download form and send it in to them which is what I'll do.

Thanks (again).

B_G_B

I originally sent R85's to my local branch and they sorted it for 3 vantages + a savings account. The upgrade of a Vantage account to Club Lloyds saw the tax exemption automatically applied as it was in effect the same account. They also applied it to the monthly saver without my request as they could see that it applied to all my other accounts. (You used to be able to see this on online banking) I confirmed by phone to my local branch also.