Regular Saver Thread **New and Restarted**

schiff

Psyduck1980 wrote: »

I have been grappling with someone on Lloyd's live chat this afternoon about this very issue and I remain massively confused by this T&C: you can save £25-£400 every month by one standing order. This needs to be in your account before the 25th of the month. Please can someone help me understand what this means in practical terms?

I was going to set up the RS on 25/10/19 and make a deposit of £400 immediately. I would then set up a SO of £400 on the 25th of the month for 11 further months. I understand that if the 25th falls on a bank holiday or weekend the SO wouldn't credit until the next working day but I can live without a day or two of interest. Is it OK for me to do this or am I missing something? What date(s) would maximise interest over the 12 month term?

When I put just this point at my interview to open the Club Lloyds account, the face to face reply was very clear - deposit once the switch is complete and the RS opened (which I did prior to the switched date), make the first payment and if you wish make another on November 1st. Which is what I'm proposing to do.

The seemingly odd business about the 25th of the month is their way of anticipating and avoiding confusion about February deposits, I think.

eskbanker

schiff wrote: »

The seemingly odd business about the 25th of the month is their way of anticipating and avoiding confusion about February deposits, I think.

It's stipulated elsewhere within LBG too, such as Halifax's HTB ISA, into which:

you can only pay in up to £200 in any calendar month. This must be paid by standing order and received by the 25th of the month

colsten

Psyduck1980 wrote: »

I was going to set up the RS on 25/10/19 and make a deposit of £400 immediately. I would then set up a SO of £400 on the 25th of the month for 11 further months. I understand that if the 25th falls on a bank holiday or weekend the SO wouldn't credit until the next working day but I can live without a day or two of interest. Is it OK for me to do this or am I missing something? What date(s) would maximise interest over the 12 month term?

If you set up your account on the 25th, make your first deposit then. Faster payment or internal transfer is ok for the initial payment. Then set up your SO for the 1st of the next month.

Do you have any particular reason for waiting until the 25th before you open and fund the account? As you can do it straight away if you like, and have the funds.

polymaff

If the money is earning reasonably at the moment, waiting enhances the return on the BoS saver, I guess.

Psyduck1980

polymaff wrote: »

Do the opening and initial payment by as near the 25th as you dare. Never tried it myself, but it is said that this doesn't need to be an SO. Then, hike the remaining 12 (yes - 12) SOs back to the first of the following months (1st Nov to 1st Oct inclusive), which gets rid of all the ambiguity - and makes you more money.

So you can actually deposit GBP5,200 in the 12 month period (13 x GBP400) rather than GBP4,800 (12 x GBP400)?

badger09 wrote: »

From more than 5 year's experience with Club Lloyds Monthly Saver, I can confirm that the 1st payment does not have to be by SO.

I can also confirm that subsequent SOs can be set for 1st of the month & that it is possible to fit in 13 payments.

I wouldn't leave it until 25th to open & fund it though, in case, for some reason, the initial FP doesn't arrive immediately

In the age of Faster Payments why on earth wouldn't it clear on the same day? Even if it went in on the next working day (28/10/19) what's the issue? I don't understand Lloyds' preoccupation with the 25th of the month. The only reason I was going to make my first payment on the 25th is because it's payday for me. I would have thought customers were able to fund once in the period 25/10/19 to 24/11/19 and so on in subsequent months. Do they use a calendar month rather than a rolling month?

schiff wrote: »

The seemingly odd business about the 25th of the month is their way of anticipating and avoiding confusion about February deposits, I think.

This last bit sort of makes sense but given we're in the era of faster payments and 25/02/20 falls on a Tuesday this is irrelevant isn't it?

Ed-1

Psyduck1980 wrote: »

Do they use a calendar month rather than a rolling month?

This last bit sort of makes sense but given we're in the era of faster payments and 25/02/20 falls on a Tuesday this is irrelevant isn't it?

They use a calendar month.

The 25th date is solely to ensure that all standing order payments credit the account within the month intended. There is no issue with paying in after 25th as long as you make sure it will count as that month's payment.

E.g. if 29th and 30th September was a weekend and you had a standing order set up for 29th, that month's standing order payment wouldn't go in until 1st October.

Psyduck1980

Ed-1 wrote: »

They use a calendar month.

The 25th date is solely to ensure that all standing order payments credit the account within the month intended. There is no issue with paying in after 25th as long as you make sure it will count as that month's payment.

E.g. if 29th and 30th September was a weekend and you had a standing order set up for 29th, that month's standing order payment wouldn't go in until 1st October.

Thank you.

So their own T&C about paying in before the 25th is actually [STRIKE]!!!!!!!![/STRIKE] nonsense? [Oops, didn't know you couldn't swear.]

YorkshireBoy

Psyduck1980 wrote: »

So you can actually deposit GBP5,200 in the 12 month period (13 x GBP400) rather than GBP4,800 (12 x GBP400)?

Correct. And £3,250 in the other Lloyds regular saver, and Halifax, and BoS, and TSB, and...several more.

Rollinghome

Psyduck1980 wrote: »

So you can actually deposit GBP5,200 in the 12 month period (13 x GBP400) rather than GBP4,800 (12 x GBP400)?

You can, but don't expect the extra interest to change your life given that the final payment will only earn interest for a matter of weeks at best.

Remember to take into account the interest you won't get if the money comes from another account. So money paid in from a 1.5% instant access account would earn 1% pa more in a 2.5% pa regular savings account. That's £4 on the first £400 invested for a full year but just 8p per full week on that final £400 - and by delaying opening the account, you'll be losing the same amount while you wait.

polymaff

@Psyduck


Just follow my initial, concise and comprehensive advice, complemented by Badger09's confirmation.


Just that one, unthanked, post - Psyduck!