Rate my account plans

Dird

Hi,

I've been with Lloyds since I was pre-teen (automatically switching from TSB after the merger/TSB closed down here). I've generally just treated it as a place to leave money rather than trying to get more value out of it.

Last week they phoned me to mention that my account can be "upgraded" to Lloyds Club account. I'll have the appointment on Monday which made me start Googling about current accounts.

Soon my savings will be wiped (beginning mortgage) but once I've built up £2k at Lloyds the plan is to open a TSB account which pays 5% up to £2k. From that point on the plan is to have 2 standing orders e.g. 2nd of month pay £500 from Lloyds to TSB, 3rd of month pay £500 from TSB to Lloyds. £500/month in is the only requirement with this and means £78/year interest.

Before/after this I'm also thinking of setting up a Halifax account simply to pay 2 direct debits as it will then pay £5/month. My thoughts were to put my mortgage & TV license DDs there because they should be pretty stable (easier for standing order) and also Santander 123 doesn't do cashback on these.

Finally I would just keep Lloyds clubcard as with my utility bills & assuming £5k savings 123 only gives £159/year vs Lloyds at £157...not worth the hassle of looking to switch until I've built up quite a bit more than £5k at Lloyds...especially since Lloyds also has cashback options which I've not yet looked at.

Assuming maximum savings on each I should make just under £300 interest about 3 times better than my Lloyds ISA despite having a much larger amount of money in it.

Diagram for clarity: http://www.pasteall.org/pic/show.php?id=89587

SuperAllyB

Santander 123 (even after tax) beats most ISA rates.

Dird

SuperAllyB wrote: »

Santander 123 (even after tax) beats most ISA rates.

But it barely beats Lloyds club account up to £5k savings. Only in the 8-20k range

colsten

Dird wrote: »

once I've built up £2k at Lloyds the plan is to open a TSB account which pays 5% up to £2k.

Don't understand why you would build up to £2K in Lloyds and then move it to TSB. Using TSB to save up £2K would make more sense IMO.

I also don't understand why you need to go into the branch to have your account upgraded to Club Lloyds. I thought you can just do it online, without wasting your time listening to a Lloyds sales person?

colsten

Dird wrote: »

But it barely beats Lloyds club account up to £5k savings. Only in the 8-20k range

It can beat it very significantly if you have DDs that qualify for cashback.

Dird

colsten wrote: »

I also don't understand why you need to go into the branch to have your account upgraded to Club Lloyds. I thought you can just do it online, without wasting your time listening to a Lloyds sales person?

I wanted to ask them a bunch of questions about the account/my mortgage deposit transfer etc.

My 123 cashback is only £65/year as mortgage not with them.

Also, am I able to set up a 2nd account at Lloyds and then switch that account to TSB to qualify for switch payments? Or does the switch service move all the accounts from one bank to another?

colsten

Dird wrote: »

My 123 cashback is only £65/year as mortgage not with them.

that sounds awfully low for a homeowner. Are you sure £5ish a month is all you would be able to get? http://www.santander123.co.uk/?cid=ppc-ca-goo-br-123%20cashback&gclid=CK-imcaynMYCFagfwwodISEAAA

Dird wrote: »

Also, am I able to set up a 2nd account at Lloyds and then switch that account to TSB to qualify for switch payments? Or does the switch service move all the accounts from one bank to another?

A current account switch switches one distinct account, identified by sort code and account number.

Dird

colsten wrote: »

that sounds awfully low for a homeowner.
A current account switch switches one distinct account, identified by sort code and account number.

I don't use credit cards, otherwise it would be about £100-140/year if I loaned the card to my mom when she went shopping: http://www.pasteall.org/pic/show.php?id=89592

Good to know, I'll look at seeing how many switches I can fit into 12 months :P

colsten

I didn't suggest you need to use the credit card. I was just looking at DD cashback and I am surprised a homeowner would make only £5 a month from DD cashback.

Dird

colsten wrote: »

I didn't suggest you need to use the credit card. I was just looking at DD cashback and I am surprised a homeowner would make only £5 a month from DD cashback.

Does the calculator not list all the cashback categories or do you just have crazily expensive phone contracts?

My mortgage won't be with santander

YorkshireBoy

colsten wrote: »

...I am surprised a homeowner would make only £5 a month from DD cashback.

£3.60 a month here currently!

My sim only contract isn't yet paid from Santander but that would only generate another 30p, so just short of £4 a month in total.