Club Lloyds Question

Richard_1986
Richard_1986 Posts: 17 Forumite
Fourth Anniversary First Post
edited 23 April 2020 at 11:28PM in Budgeting & bank accounts
Hi 
I've just opened a new club Lloyds account to have my salary paid into I've always had a basic account that has never paid any interest so am new to it and it states on the website you can:
Earn monthly credit interest that’s on balances from £1 up to £5,000. Just pay out two different direct debits each month You’ll get 1.00% AER (0.99% annual gross) variable on balances from £1 up to and including £3,999.99.
My question is do I have to leave my wages in there for so long to earn the interest or can I withdraw them straight away after its gone in? What interest would I get on £620 per month?

Thank you for your help.

Comments

  • Yorkshire_Pud
    Yorkshire_Pud Posts: 1,959 Forumite
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    edited 24 April 2020 at 8:25AM
    You can withdraw your wages straight away. You won’t get any interest unless you have or leave a balance in the account. You do need to fund it £1500 or more a month to avoid the £3 account charge.
    £620 at 1% = £6.20 a year. Monthly divide by 12. About 51p per month.
  • MDMD
    MDMD Posts: 1,527 Forumite
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    edited 24 April 2020 at 6:27AM
    £620 at 1% = £62 a year. Monthly divide by 12.

    Don’t you mean £620 at 1% = £6.20 a year, assuming that £620 stays in there all year, two DDs paid out, although if £1,500 not paid in a month the £3 per month fee will outweigh the interest (as noted above).
  • Yorkshire_Pud
    Yorkshire_Pud Posts: 1,959 Forumite
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    MDMD said:
    £620 at 1% = £62 a year. Monthly divide by 12.

    Don’t you mean £620 at 1% = £6.20 a year, assuming that £620 stays in there all year, two DDs paid out, although if £1,500 not paid in a month the £3 per month fee will outweigh the interest (as noted above).
    Yes cheers, amended.
  • Thanks very much for your replies hardly worth doing just for the interest then.
  • General_Grant
    General_Grant Posts: 5,250 Forumite
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    Thanks very much for your replies hardly worth doing just for the interest then.

    Did you actually read the terms of the account before signing up for it?
    There's not just the interest but other benefits to choose from in addition. 
  • Katiehound
    Katiehound Posts: 8,108 Forumite
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    Well, the interest isn't bad if you can leave £5k per month- 1% on £4k and 2% on the last £1k. You also get a lifestyle benefit.
    You may well do better with TSB since you get 1.5% on up to £1.500 (interest rate cut to that from next month)
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  • colsten
    colsten Posts: 17,597 Forumite
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    edited 24 April 2020 at 2:14PM
    There’s also still access to the - by now - quite amazing Club Lloyds Monthly Saver, up to £400/moth max, 2.5% fixed AER. I wouldn’t be surprised though if this vanishes for new applicants before long.
  • Sea_Shell
    Sea_Shell Posts: 9,967 Forumite
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    Does anyone think they'll give an extension on the cinema vouchers, if they were your chosen "perk", which obviously can't now be used?
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.98% of current retirement "pot" (as at end April 2025)
  • Zanderman
    Zanderman Posts: 4,851 Forumite
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    Sea_Shell said:
    Does anyone think they'll give an extension on the cinema vouchers, if they were your chosen "perk", which obviously can't now be used?
    Threads on this here https://forums.moneysavingexpert.com/discussion/comment/77061369 and here https://forums.moneysavingexpert.com/discussion/6133767/extension-of-bank-reward-schemes-lloyds
  • Sea_Shell
    Sea_Shell Posts: 9,967 Forumite
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    Thanks for that.  I posted without searching, as it just popped into my head when I saw this thread.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.98% of current retirement "pot" (as at end April 2025)
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