What happens to savings accounts if you switch?

Sophiepyman

Hello, I am looking to switch my lloyds current account to a first direct first account. I currently have a monthly saver connected to my lloyds account with a few hundred pounds in it (£800). This account has a fixed 2% interest but I would like to transfer this straight into the first direct saving account with 6% interest.
How does this work, if the first direct account only let's you add £300 a month will I have to do this bit by bit. If my account is switched automatically for me what will happen the old savings account as I believe it's only for lloyds customers so will surely have to move too?
Any help is appreciated.
Thanks

DCFC79

Open up a savings account at say Tesco and transfer the 800 and close the account.

EarthBoy

Savings accounts don't switch to your new bank, they stay with the old bank. If, like the monthly saver, it's a condition that you hold a current account in order to have the savings account, Lloyds might well close the monthly saver and send you a cheque for the money in it, or change it to an Easy Saver, which pays very little interest. They certainly won't send it on to First Direct for you.

You can only pay into the First Direct regular saver from their current account at £300 per month maximum, so you'll have to find another home for the £800 you've already got with Lloyds.

Sophiepyman

Thanks for the advice. I may transfer all the money into my current account before I switch so it all moves over to first direct then slowly transfer it into the first direct saver. That's as long as Lloyds will allow me to transfer money out of the monthly saver.

MarkFromCornwall

Sophiepyman wrote: »

That's as long as Lloyds will allow me to transfer money out of the monthly saver.

You can make unlimited withdrawals from a Lloyds monthly saver to a Lloyds current account.