Lloyds club 4% question

parking_question_chap

Not sure if this is in the correct sub forum but here goes.

Currently have a Santdander 123 which I want to leave. Due to the £5 fee and reduced interest I will not be making much interest. I am considering the Lloyds 4% but do not earn £1500 per month to pay in. I earn £1450 so would incur the £5 monthly fee.

Do you know if I could just pay in £50 cash each month to make the £1500 total, then withdraw a few days later? and do the same each month.

bigadaj

Yes, multiple payments will meet the criteria.

Your way with cash will work, or alternatively just set up a standing order with another account you might hold to bounce money in and out, just make sure they aren't on the same day if the balance on either account is less than the standing order amount, as you might be overdrawn if there is a delay in one payment.

eandjsmum

Hi Op I am in same position as you I have had a club Lloyds account for some time and I just took the cash out of the account and paid it straight back in.

bigfreddiel

It won't be long before Lloyds club accounts knock back their interest rate to say 2%?

Ditto for the TSB 5% account, I think that will go down to 2% as well.

Cheers fj

TheLondoner

bigfreddiel wrote: »

It won't be long before Lloyds club accounts knock back their interest rate to say 2%?

Ditto for the TSB 5% account, I think that will go down to 2% as well.

Cheers fj

As long as you have £1500 in the account, you can cycle it from one account to another by standing order every month. That'll work. The bigger issue is the blasted direct debit requirement!

bigfreddiel

TheLondoner wrote: »

As long as you have £1500 in the account, you can cycle it from one account to another by standing order every month. That'll work. The bigger issue is the blasted direct debit requirement!

Direct debits are easy with a Tesco's savings account fj

Eco_Miser

parking_question_chap wrote: »

I am considering the Lloyds 4% but do not earn £1500 per month to pay in. I earn £1450 so would incur the £5 monthly fee.

Lloyds has no requirement to earn anything at all, fortunately for me. I just make sure £1500 is credited to the account each month (by faster payments in my case, because I am juggling varying amounts in several accounts). Most of that stays just as long as it takes me to log into the account and move it onwards, a bit stays a little longer to fund the DDs.

MABLE

bigfreddiel wrote: »

It won't be long before Lloyds club accounts knock back their interest rate to say 2%?

Ditto for the TSB 5% account, I think that will go down to 2% as well.

Cheers fj

If I read it correctly TSB monthly saver has already gone down to 2 percent for accounts opened after 29 June 2016.

Eco_Miser

MABLE wrote: »

If I read it correctly TSB monthly saver has already gone down to 2 percent for accounts opened after 29 June 2016.

Yes, and the Lloyds monthly saver dropped to 3% even earlier; but this discussion is about the current accounts, which are still at 5% and 4%.

ColdIron

MABLE wrote: »

If I read it correctly TSB monthly saver has already gone down to 2 percent for accounts opened after 29 June 2016.

The 'TSB 5% account' referred to is the TSB Classic Plus current account which still pays 5%, though it's widely anticipated that it will suffer a rate reduction soon