How often do bank account interest rates change?

LibbyJ

I'm looking to switch to a Club Lloyds current account as it has such great interest rates. However, does anyone know what the chances are of Lloyds lowering this interest rate soon? Is there a limit on how often, or how considerably banks can change their consumer bank account interest rates? I'm worried about switching only to find that they'll only lower their high rates in a few months time!

Thanks

colsten

Variable rates can be changed at any time. If they go down, banks usually give you 60 days notice. If they go up, they can change them without telling you.

Some banks change rates on some of their products faster, some slower. E.g. Lloyds Vantage went from 3 to 4 to 3 to 1.5% and they introduced Club Lloyds with 4% in the space of less than 3 years whilst Santander 123 stayed on 3%over the same period.It's not only interest rates that can change, but also entitlement, e.g. pre-requisites for getting paid interest (DDs, min monthly payment) and max number of accounts.

Basically, nobody can tell you what tomorrow brings but if I were you, I would make hay whilst the sun shines.

Gromitt

To be honest, because of how easy it is now to switch banks, I'd just do it. If you company accidentally pays your salary into your old account it'll simply be redirected.

If a better account turns up in a few months time, switch again

Or you may decide to simply fund the account yourself (no requirement to have salary deposited) and setup a few non-important DDs to get the perks.

LibbyJ

Thanks gromit and colsten - your answers were exactly what I was looking for and I shall indeed be switching!