Q for Lloyds Bank Rep and any MSE members that opened a new Club Lloyds Monthly Saver

oldfella

Consumerist wrote: »

The question is - have you actually done this and did you have a final balance of more than £4,800 (excluding interest) at maturity?

yes and yes

I got £114.50 interest which is about £10 more than you would get with a normal 12 monthly deposit

Consumerist

oldfella wrote: »

yes and yes
I got £114.50 interest which is about £10 more than you would get with a normal 12 monthly deposit

Great. It would seem that they refer only to calendar "months" which means you can slip an extra payment in. I had considered trying this last year but didn't think I would get away with it.

Nice one. :T

colsten

oldfella wrote: »

the real benefit comes through changing the SO date. You end up getting around £10 extra interest through pulling forward the time each monthly payment is made.

as far as the 88p is concerned, its no extra effort and I would rather me have the money than the bank.

How do you make £10 from having £400 extra in the bank for 20 day?

Even if you did manage to make it more than 20 days, let's say 365 days, the extra interest is peanuts money and I fail to see why you would even try and con Lloyds out of it.

I might even object to you trying to steal money from us shareholders though this might be lost on you.

Ed-1

colsten wrote: »

How do you make £10 from having £400 extra in the bank for 20 day?

Even if you did manage to make it more than 20 days, let's say 365 days, the extra interest is peanuts money and I fail to see why you would even try and con Lloyds out of it.

I might even object to you trying to steal money from us shareholders though this might be lost on you.

It's the fact that the monthly deposits throughout the year are all pushed forward and thus cumulatively earn more interest than they would be doing elsewhere (in theory). e.g. if the account was opened on 31st January with monthly deposit 1 on the same day and monthly deposits 2-13 are all made on 1st of the subsequent months thereafter rather than the deposits 2-12 (with no 13th) being made on the last day of each month thereafter, 2-13 are all earning an extra month's interest than they would otherwise be doing assuming that the money would be earning no interest elsewhere. It's all trivial in my opinion and regardless, at least at the moment I can't open any Lloyds accounts!

Consumerist

colsten wrote: »

How do you make £10 from having £400 extra in the bank for 20 day?

If you made your first payment on the 25th (last day it counts for interest in that calendar month) then make payment 2 onwards on the 1st of each subsequent month then, effectively, all the subsequent payments are going in 24 days earlier than they otherwise would have.

£400 @ 4% pa for 24 days earns about £1 gross extra each month.

Makes sense to me. Whether it's worth it is a matter of individual choice, of course.

oldfella

OK I have £10 in my hands - shall I keep it or give it to the bank to add to their profits ?

colsten

We'll get nowhere very fast if we get excited about £10 a year.

oldfella

I dont think we are excited at all, I just prefer that the banks dont make more money than they have to. Multiply £10 by the number of Club Lloyds customers and I suspect you have a reasonable chunk of money sufficient to pay a few bonus payments.

colsten

oldfella wrote: »

I dont think we are excited at all, I just prefer that the banks dont make more money than they have to. Multiply £10 by the number of Club Lloyds customers and I suspect you have a reasonable chunk of money sufficient to pay a few bonus payments.

How much extra are you/we going to jointly extract from Lloyds, in which we all still own about 20%?

Is there a possibility that any or all of us could make a lot more than a tenner in the time it would take us trying to outwit a major bank? That's just a rhetorical question now.

Consumerist

In any event, 88p has now increased to £10.

Keep talking, chaps. At this rate we could be rich by Christmas.