Does Lloyds TSB Classic account pay interest?

tomstickland

I used to receive interest in my LLoyds TSB Classic account. I decided to check the rates today and look at their website.
It looks like it no longer pays any interest. Did this change some time this year then?
http://www.lloydsbank.com/current-accounts/comparison.asp

I'm wondering if I should switch to TSB since they're paying 5% AER on current accounts.
http://www.moneysavingexpert.com/news/banking/2014/03/tsb-to-pay-5-interest-on-new-current-account--is-it-any-good

eskbanker

'Oh dear' indeed!

Lloyds TSB ceased to be an entity over a year ago in September 2013.

If you have a Lloyds Classic account then did you add Vantage to it? This used to provide interest of 3% or more but changed to 1.5% in July 2014, when other constraints were added, such as the need to have direct debits paying out in order to qualify for interest.

Have you read anything that they've sent you in the last year or two?

tomstickland

Yes, I know they split. I remember before they combined in the first place. It really doesn't make much difference to me - I still log on to a website and manage my funds.

I monitor the account regularly and haven't needed to care too much about what's going on since I just use it for a monthly float and small interest payments were coming in each month.

I'm doing a tidy up at the moment and running various calculations on mortgages and current accounts, hence decided to check out the actual interest rate. Looks like it changed to zero a few months ago!

The LLoyds [STRIKE]TSB[/STRIKE] current account does offer some interest but I might move to the TSB account that pays 5%. It only makes around £70 a year on my average balance but that's better than nothing I suppose.

Archi_Bald

Oh dear oh dear oh dear.

Uxb

The pure classic account (without Vantage) stopped paying interest some time ago - as in years ago - A quick check of my records shows it stopped in Jan 2011.

Aquamania

tomstickland wrote: »

I used to receive interest in my LLoyds TSB Classic account. I decided to check the rates today and look at their website.
It looks like it no longer pays any interest. Did this change some time this year then?
http://www.lloydsbank.com/current-accounts/comparison.asp

I love it when people have answered thir own question :T

tomstickland wrote: »

I'm wondering if I should switch to TSB since they're paying 5% AER on current accounts.
http://www.moneysavingexpert.com/news/banking/2014/03/tsb-to-pay-5-interest-on-new-current-account--is-it-any-good

5% sounds better than 0% to me.

But you need to jump though some hoops to get that 5%. Do read the terms and ensure you follow them if you want 5%

EarthBoy

Aquamania wrote: »

5% sounds better than 0% to me.

But you need to jump though some hoops to get that 5%. Do read the terms and ensure you follow them if you want 5%

What hoops? The only conditions are that you must pay in £500 per month and agree to paperless statements and correspondence. You don't even need to leave the £500 in there, you can transfer it straight out again, which I and many other people do. No direct debits, standing orders, or anything else are required.

Aquamania

EarthBoy wrote: »

What hoops? The only conditions are that you must pay in £500 per month and agree to paperless statements and correspondence. ....

I love it when people have answered their own question :T

EarthBoy

Aquamania wrote: »

I love it when people have answered their own question :T

TSB's conditions are hardly hoops that need an effort to jump through though.

tomstickland

I love it when people have answered thir own question

I didn't answer my own question though.

HHarry

If you meet the requirements (pay in £1500 a month, and pay out 2 Direct Debits), why not convert your existing account to Club Lloyds? The interest rate depends on your balance, so a TSB account may still be better, but you can upgrade easily through internet banking.