Advice on Current Accounts

SephirothXI

I am trying to setup some current accounts for my savings that currently sit in an ISA (interest rate is about to fall). I want to transfer £20k to a Santander 123 current account and £5000 to a Lloyds Club current account and probably stick the rest (about 14k) in the Santander ISA as I don't want to deal with a dozen current accounts.

But even setting up two current accounts like this seems confusing. I can satisfy the requirements for both and it makes sense to get my salary paid into Lloyds Club before transferring it out (some to Santander and some elsewhere) but surely this means I need a third current account for my every day use?

Currently I have a Lloyds basic account. Is it possible to create a Lloyds Club account as well or is it one or the other? I would be happy to keep my basic account for every day use.

What would you advise for setting up my accounts?

Also if you go over £5000 in Club Lloyds do you lose interest for the whole month or just the hours/day you were over? Or does it work like the Santander 123 account where you still get interest until the maximum but nothing for the remainder?

Edit: I'm also thinking about using First Direct as my every day current account since I'm doubtful I could have both a Lloyds basic and a Club Lloyds.

colsten

There is no reason why you shouldn't have more than 1 current account with Lloyds. I have held at least 3 for years and am holding 4 at present. Most banks I know of will allow you more than 1 current account.

There is also no reason to think Lloyds would stop paying interest altogether if you go over £5K in a Club Lloyds.

You are probably overthinking things.

TrustyOven

colsten wrote: »

There is also no reason to think Lloyds would stop paying interest altogether if you go over £5K in a Club Lloyds.

This is probably due to the weird use of English language (or general weirdness of the English language ). I got confused by this some time ago.

I'm sure I've seen sentences like "3% interest on balances up to £5000".

It suggests the interest is only paid on balances between £0 and £5000 (inclusive), having a balance above this does not give any interest.

Minrich

My opinion is that if you hold £5500 in an account you get interest on the £5000 but nothing on the £500 .

eskbanker

There's no need to speculate or complain about potentially ambiguous wording, Lloyds make it quite explicit prominently on the front page at http://www.lloydsbank.com/current-accounts/club-lloyds.asp:

If your balance is over £5,000, you'll still earn 4% AER/3.93% Gross on the first £5,000, but 0% on anything over that.

I'm struggling to think how they could word it any more clearly than that!

SephirothXI

Thanks. I don't know how I missed that line, was probably looking at the interest rates mentioned further down the page in bigger text where it doesn't mention that.

I guess I'll see if I can set up a second current account tonight.

gabitzul

I have a Club Lloyds and have just over £5k (£about 5050) and get interest just on 5k as mentioned - about £13 monthly.

Add to that 2 Halifax rewards and my mobile phone plan get paid to me by the HBOS group. Can't argue with that really.