Club Lloyds Monthly Saver

nasca07

Hello,

I opened few minutes ago a Club Lloyds Monthly Saver account and I am a little bit confused about the monthly standing order.

In order to get the interests at the end of the year the monthly standing order must reach my account by the 25th of each month for it to be counted as that month's payment.

Does it mean that if for example I setup a standing order to be paid on the 26th of each month they will not be counted and at the end of the year I will get 0?

I tried to setup a standing order for today 25/01, but unfortunately the first date available is 26/01.

At this point do you believe that I should setup the standing order from the beginning of February? And in this case will I miss my first month of interest?

Thanks.

bowlhead99

You will get interest on all the money which is in the account for whatever time it is in the account, as long as you have met the terms and conditions for the account. So if a particular chunk of the money is in the account for 300 days out of a maximum 365 in a year, it will earn 300/365ths of a full year's worth of interest, as long as you have met the terms and conditions.

The thing about the date is just that they have a restriction on how many deposits you can make in a month. Deposits must be made by standing order, only one per month. If the standing order hits the account by 25th, it counts as "that month's" payment.

So if you didn't get your payment into the account by 25 Jan but instead got it in on 26 Jan, it doesn't count as a "January" payment but a "February" payment. So you now can't make another February payment next week or the week after or the week after that... you have to wait until 26 Feb when the next payment would be called a March payment, because you're only allowed one payment for each month.

But if you opened the account this weekend and you aren't going to close the account for another 363 days from tomorrow, the money you pay in tomorrow 26 Jan can still earn 363 days of interest. It is not the case that you'd get 0 interest. You'd get whatever interest is owed on whatever amount you put in - say you put £100 in, at 4% a year, for nearly a year, is nearly £4.

nasca07

All clear now, thank you for the detailed answer.