Closing Club Lloyds - Monthly Saver?

dj1471

Looking at the T&Cs for the Club Lloyds Monthly Saver there's nothing to suggest that you need to keep your Club Lloyds current account to maintain the Monthly Saver account.

Anybody able to confirm that closing the current account doesn't affect the saver in any way?

I want to switch my current account but keep paying into the Monthly Saver until the 12 months are up.

PeacefulWaters

Why close a current account paying 4% interest?

Open a dummy account elsewhere then switch that.

MarkFromCornwall

dj1471 wrote: »

I want to switch my current account but keep paying into the Monthly Saver until the 12 months are up.

Don't you want to open a new Monthly Saver the day after your current one matures?

Westie983

the funds have to come from the club lloyds account so if you close your club account you wont be able to fund the monthly saver...

copied from the website -
Save from £25 to £400 a month and enjoy instant access with a great fixed rate for one year. You can make as many withdrawals as you like into your Club Lloyds current account, but you can only pay in once a month by standing order and can’t replace what you’ve withdrawn. This standing order must reach your account by the 25th of each month for it to be counted as that month's payment.

Access - Club Lloyds current account customers - Web, phone and branch.

Archi_Bald

Westie983 wrote: »

the funds have to come from the club lloyds account

they don't actually. You can fund the monthly saver from any account, incl non-Lloyds accounts. The funding has to be by SO in all cases.

I haven't made any withdrawals from my monthly saver but it looks as if these are allowed into any Lloyds current account, not just into the Club Lloyds.

I agree with others though - why close a 4% account.

General_Grant

Westie983 wrote: »

the funds have to come from the club lloyds account so if you close your club account you wont be able to fund the monthly saver...

copied from the website -
Save from £25 to £400 a month and enjoy instant access with a great fixed rate for one year. You can make as many withdrawals as you like into your Club Lloyds current account, but you can only pay in once a month by standing order and can’t replace what you’ve withdrawn. This standing order must reach your account by the 25th of each month for it to be counted as that month's payment.

Access - Club Lloyds current account customers - Web, phone and branch.

Where does it say the savings have to come from a Club Lloyds account? Though my SO is from a Club Lloyds current account, that is not stipulated. The only requirement is that you have a Club Lloyds account at the time of opening the account. The website says that "Your standing order cannot be set up from another savings account with us", not that it can't come from any account but a CL current account.

Withdrawals during the one year life of the Monthly Saver can be made in branch (and I don't see a stipulation that it must be via the Club Lloyds current account). In fact (quoting from the website),
"You can make withdrawals from the Account at any of our branches but you can only make payments from this Account to a current or savings account in your name with us (or in the case of a joint account, in any of your names). You cannot set up standing orders on the Account to make these payments . . ."

Gers

The confusion comes (if there is any) from Lloyds having both a Club Lloyds Monthly Saver - 4% andy you must have one of the Club Lloyds acounts - the other one is a Monthly saver at 2% interest.

Have a read here.

dj1471

PeacefulWaters wrote: »

Why close a current account paying 4% interest?

I choose to maintain a single current account wherever I can get the best return. I appreciate that this is not a good strategy, but it keeps things simple and minimises the amount of time and effort I have to put into managing my money.

MarkFromMullion wrote: »

Don't you want to open a new Monthly Saver the day after your current one matures?

No, in the future I'll be overpaying my mortgage each month instead of funding a regular saver.

General_Grant wrote: »

Withdrawals during the one year life of the Monthly Saver can be made in branch (and I don't see a stipulation that it must be via the Club Lloyds current account).

Hidden in the PDF version of the T&Cs they also state that you can request a cashcard to access the account, though I will probably just open a basic account with them to facilitate access.

saintalan

dj1471 wrote: »

I choose to maintain a single current account wherever I can get the best return. ...

Hi dy, so I assume you are switching to TSB for 5% or switching for cashback where it will exceed your interest for the time you are there?

Cheers

Alan

dj1471

saintalan wrote: »

Hi dy, so I assume you are switching to TSB for 5% or switching for cashback where it will exceed your interest for the time you are there?

I'm intending to switch to HSBC for the £120 incentive they're offering from tomorrow. This doesn't offset the lost interest from Lloyds, but it makes me eligible for HSBC's SaveTogether ISA which will give me another £120.

So I'll be trading £200 of pre-tax interest from Lloyds for £240 of tax-free incentives from HSBC. Not a huge return, but I may hit the higher rate tax bracket this year which would make it a slightly better deal.

Westie983

you cant open a club monthly saver without having a club current account, and the SO comes from this account as mentioned at the bottom of the post, where it says access it says Club Lloyds current account customers - Web, phone and branch.

Of course you are right you have had a club current account and this is where the SO are coming from right now, Is it worth the risk closing the account and not getting the full 12 months at 6% for the sake of getting another incentive.

are you not better to open a donor account to switch instead, without clear clarification that you are able to fund the club monthly account from an alternative source other then the club current account.

As its a club savings account for the club account holders I would assume that you are not able and you may sacrifice the interest...