Lloyds and Bank of Scotland to cut current account interest on up to £4,000 - MSE News

Lloyds and Bank of Scotland will be cutting the interest paid on balances of up to £4,000 on their Club Lloyds and Vantage accounts from this autumn...
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'Lloyds and Bank of Scotland to cut current account interest on up to £4,000'
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  • beefturnmailbeefturnmail Forumite
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    So an effective 1.2% on a balance of £5k then i.e. not worth it given you can earn 1.5% in an 'ordinary' savings account
  • badger09badger09 Forumite
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    More old 'News':cool:

    https://forums.moneysavingexpert.com/showthread.php?t=6019262

    I'm not even sure if that was the first mention
  • afmfifghafmfifgh Forumite
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    So an effective 1.2% on a balance of £5k then i.e. not worth it given you can earn 1.5% in an 'ordinary' savings account

    Isn't it 1.188% or 1.19% rather than 1.2%?

    Using the figures from the article you can earn with the new rates £59.40 on £5,000 which is 1.19% by my calculations.

    Or are you just rounding it up? I know the difference isn't much but I prefer to keep my spreadsheet as accurate as possible.
  • badger09badger09 Forumite
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    afmfifgh wrote: »
    Isn't it 1.188% or 1.19% rather than 1.2%?

    Using the figures from the article you can earn with the new rates £59.40 on £5,000 which is 1.19% by my calculations.

    Or are you just rounding it up? I know the difference isn't much but I prefer to keep my spreadsheet as accurate as possible.

    That's a difference of 60p on £5k.

    By all means keep your spreadsheet 'as accurate as possible', but some people are struggling with the basic concept of the new rates, and most of us won't quibble over 60p;)
  • DennisTenusDennisTenus Forumite
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    I think this article is very confusing.

    So it's not 2% on the whole amount if you have £5K in the account?

    It's only 2% on the max of £1K between £4K and £5K?
  • afmfifghafmfifgh Forumite
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    I think this article is very confusing.

    So it's not 2% on the whole amount if you have £5K in the account?

    It's only 2% on the max of £1K between £4K and £5K?

    That is correct, the lower rate of 1% is paid on the first £1 to £4,000.

    Then the £4,000 - £5,000 earns 2%.

    So if you have a £5,000 balance £4,000 of that will be sat there earning 1% and only £1,000 will be getting 2%.

    I am sure many are reading it as 2% on the full £5,000. I did at first.
  • DennisTenusDennisTenus Forumite
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    afmfifgh wrote: »
    I am sure many are reading it as 2% on the full £5,000. I did at first.

    Exactly, me too. It's like they've made it as confusing as possible.

    Moving money....... :mad:
  • Wheres_My_CashbackWheres_My_Cashback Forumite
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    badger09 wrote: »
    More old 'News':cool:

    https://forums.moneysavingexpert.com/showthread.php?t=6019262

    I'm not even sure if that was the first mention

    Now you know why MSE has forums ?

    A lot of the info put out by MSE has already been in the public domain for a while, within these and other forums.

    They just 'collect' the info, collate it and highlight it into one place.
  • eskbankereskbanker Forumite
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    afmfifgh wrote: »
    I am sure many are reading it as 2% on the full £5,000. I did at first.
    Exactly, me too. It's like they've made it as confusing as possible.
    Not sure how they could have explained it any more concisely and clearly to be honest, but how would you have phrased "The accounts will pay 2% AER interest on the part of any balance between £4,000 and £5,000" (as opposed to "x% on the entire balance if between £yK and £zK" which IIRC is how they used to explain their old tiering structure several years ago)?
  • DennisTenusDennisTenus Forumite
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    Or they could have just made it same % not tiered, which makes hardly any difference as it is
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