MSE News: Halifax and Lloyds to slash rewards and interest on flagship accounts

KTF

No mention of Tesco. Still at 3% for now.

Mike_Saver

Before April the banks payed £5/mth net of basic rate interest, equivalent to £6.25 gross. Non-taxpayers could reclaim the difference.

From 6th April they payed interest gross, at the reduced rate of £5/mth. Customers saw the same figure on their statements, but were 20% worse off. In effect the banks had stolen the government's tax cut from their customers.

From 1st February they are going to pay £3 gross, a cut of 52% on a year earlier.

Consumerist

Mike_Saver wrote: »

Before April the banks payed £5/mth net of basic rate interest, equivalent to £6.25 gross. Non-taxpayers could reclaim the difference.
From 6th April they payed interest gross, at the reduced rate of £5/mth. Customers saw the same figure on their statements, but were 20% worse off. In effect the banks had stolen the government's tax cut from their customers.
From 1st February they are going to pay £3 gross, a cut of 52% on a year earlier.

The payments will still be net of BR tax and non-taxpayers will still be able to claim the difference, just as now.

badger09

Mike_Saver wrote: »

Before April the banks payed £5/mth net of basic rate interest, equivalent to £6.25 gross. Non-taxpayers could reclaim the difference.

From 6th April they payed interest gross, at the reduced rate of £5/mth. Customers saw the same figure on their statements, but were 20% worse off. In effect the banks had stolen the government's tax cut from their customers.

From 1st February they are going to pay £3 gross, a cut of 52% on a year earlier.

If you are talking about the Halifax Reward, it is not interest. The clue is in the name;).

Halifax have not stolen the government's tax cut.

Consumerist wrote: »

The payments will still be net of BR tax and non-taxpayers will still be able to claim the difference, just as now.

Correct.

ceredigion

Mike_Saver wrote: »

Before April the banks payed £5/mth net of basic rate interest, equivalent to £6.25 gross. Non-taxpayers could reclaim the difference.

From 6th April they payed interest gross, at the reduced rate of £5/mth. Customers saw the same figure on their statements, but were 20% worse off. In effect the banks had stolen the government's tax cut from their customers.

From 1st February they are going to pay £3 gross, a cut of 52% on a year earlier.

There is one born every minute.

adindas

Is Classic account with Vantage still exist for those who still have it ??

The last communication I received from them is in July 2014 mentioning the rate was slashed to 1.5%. No other communication regarding the drop interest I have ever received since then.

People who has Santander 123 with minimum amount of cashback might be start be looking into this account if it is still paying 1.5%.

For people who still have Vantage account and meet the vantage requirement. Does Lloyd still pay 1.5% interest for the balance of £3000 - £5000 or not ?

Is there any news about the interest rate changing of this account ??

Consumerist

adindas wrote: »

Is Classic account with Vantage still exist for those who still have it ??

The last communication I received from them is in July 2014 mentioning the rate was slashed to 1.5%. No other communication regarding the drop interest I have ever received since then.

People who has Santander 123 with minimum amount of cashback might be start be looking into this account if it is still paying 1.5%.

For people who still have Vantage account and meet the vantage requirement. Does Lloyd still pay 1.5% interest for the balance of £3000 - £5000 or not ?

Is there any news about the interest rate changing of this account ??

Last I heard from Lloyds is that they were discontinuing all (Lloyds) Vantage accounts. They are still available from Bank of Scotland, I think.

Currently, BoS Vantage account is paying 3% on £3k - £5k balances [Thanks YorkshireBoy for the correction]. As mentioned earlier, they recently introduced a minimum requirement of 2 x DDs to qualify for Vantage interest so they may not change their interest-rate structure just yet.

YorkshireBoy

adindas wrote: »

Is Classic account with Vantage still exist for those who still have it ??

The last communication I received from them is in July 2014 mentioning the rate was slashed to 1.5%. No other communication regarding the drop interest I have ever received since then.

People who has Santander 123 with minimum amount of cashback might be start be looking into this account if it is still paying 1.5%.

For people who still have Vantage account and meet the vantage requirement. Does Lloyd still pay 1.5% interest for the balance of £3000 - £5000 or not ?

Is there any news about the interest rate changing of this account ??

Answered on their website...isn't it?...

https://www.lloydsbank.com/current-accounts/existing-customers.asp

YorkshireBoy

Consumerist wrote: »

Currently, BoS Vantage account is paying 3% on £4k - £5k balances.

£3k - £5K.

Consumerist

YorkshireBoy wrote: »

£3k - £5K.

Thanks for the correction YorkshireBoy.

Incidentally, you can have up to three BoS Vantage accounts, if I remember correctly.