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

Former_MSE_Naomi

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...

Read the full story:
'Lloyds and Bank of Scotland to cut current account interest on up to £4,000'

Click reply below to discuss. If you haven’t already, join the forum to reply.

beefturnmail

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

badger09

More old 'News':cool:

https://forums.moneysavingexpert.com/discussion/6019262/club-lloyds-bos-vantage-interest-rates-dropping

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

afmfifgh

beefturnmail wrote: »

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.

badger09

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;)

DennisTenus

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?

afmfifgh

DennisTenus wrote: »

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.

DennisTenus

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_Cashback

badger09 wrote: »

More old 'News':cool:

https://forums.moneysavingexpert.com/discussion/6019262/club-lloyds-bos-vantage-interest-rates-dropping

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.

eskbanker

DennisTenus wrote: »

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)?

DennisTenus

Or they could have just made it same % not tiered, which makes hardly any difference as it is