13 payments into Club Lloyds Monthly Saver

tel_

surreysaver said:

It also works with the Halifax, Bank of Scotland and the TSB.
Probably others too

Lloyds & TSB's saver accounts have to be funded by standing order though. Surely the 1st payment on opening won't count if you fund it via the current account with an instant payment?

Vortigern

tel_ said:

surreysaver said:

It also works with the Halifax, Bank of Scotland and the TSB.
Probably others too

Lloyds & TSB's saver accounts have to be funded by standing order though. Surely the 1st payment on opening won't count if you fund it via the current account with an instant payment?

You could make the first payment at the end of a month by SO, then cancel that SO and create new SO for the first day of each subsequent month. 

ColdIron

Vortigern said:

tel_ said:

surreysaver said:

It also works with the Halifax, Bank of Scotland and the TSB.
Probably others too

Lloyds & TSB's saver accounts have to be funded by standing order though. Surely the 1st payment on opening won't count if you fund it via the current account with an instant payment?

You could make the first payment at the end of a month by SO, then cancel that SO and create new SO for the first day of each subsequent month. 

That's what I do

colsten

I have been making my 1st payments by FP from my hub account (which is at a different bank). Subsequent monthly payments come on the 1st of every month by SO from the hub account. Never had any issue with this approach.

tel_ said:

Lloyds & TSB's saver accounts have to be funded by standing order though. Surely the 1st payment on opening won't count if you fund it via the current account with an instant payment?

It does count.

Alexland

tel_ said:

Lloyds & TSB's saver accounts have to be funded by standing order though.

Club lloyds regular saver t&cs seem a bit inconsistant on this:

"You must pay in money by standing order each month"

then later:

"You can pay an amount of between £25 and £400 by standing order, or by transfer from your current account, each calendar month the Account is open"

https://www.lloydsbank.com/assets/media/pdfs/savings/club-monthly-and-easy-saver-conditions.pdf

where_are_we

ColdIron said:

where_are_we said:

Account started on 25th of the month. So 25 days extra interest.

It's not that you get 25 days extra interest as such.The advantage comes from opening it at the end of the month. For a few days you will have £400 saved but when you make your second deposit on the 1st of May, your next full month will have £800. If you had opened it on the 1st, your first month would be only £400. On the final month (April 2021 and your 13th payment) you would have £5,200 for almost a month instead of for a few days. Broadly it allows you to have nearly an extra £400 per month earning interest. The difference is more than a few pennies

I was aware of this advantage and, like Colsten, I have used FP`s from an external account as an opening deposit with no penalty in the past. They stipulate monthly SO`s not later than 25th (presumably to avoid missing a late February weekend payment).

If you are contemplating opening a calendar one that allows 13 payments do it now and get your FP deposit in before the end of the month and then 12 SO`s starting 1st May.

tel_

Thank you for all your comments on this.

Considering all your experiences, my plan is to open the reg savers on Wednesday, make the first payments on Weds by FP from my Lloyds & TSB current accounts (involving no external ones), and then set-up the SO's from those current accounts for the 1st (and leaving Thurs 30th free for any hiccups that might occur). 

I decided upon my above strategy, as after reading your posts, I then thought 'what if thirteen SO's were to be detected by their computers?' which was the opposite thinking of my original question!

As you may well be thinking - yes, I have overthought this 

colsten

Setting everything up on Wednesday might be cutting it a bit fine for the SOs to start this Friday. It may or may not be enough time for the banks to set it all up. Why not go ahead straight away?

surreysaver

tel_ said:

surreysaver said:

It also works with the Halifax, Bank of Scotland and the TSB.
Probably others too

Lloyds & TSB's saver accounts have to be funded by standing order though. Surely the 1st payment on opening won't count if you fund it via the current account with an instant payment?

Doesn't matter.  I'm yet to find a financial institution that cares about the difference between a SO and a FP, even though statements do usually distinguish, although some Regular Savers such as HSBC and M&S force you to set up a standing order, and you cannot change the date.  These are in the minority, though.

ColdIron

tel_ said:

Considering all your experiences, my plan is to open the reg savers on Wednesday, make the first payments on Weds by FP from my Lloyds & TSB current accounts (involving no external ones), and then set-up the SO's from those current accounts for the 1st (and leaving Thurs 30th free for any hiccups that might occur).

When I opened the TSB Monthly Saver at the end of March I recall that there was no option to make a transfer from the current account so you might want to be prepared to use an external account. But I agree with colsten, why cut it so fine? If you do it now there ought be time to set up a one off SO for the first payment if you don't want to make an external FP. I think this is an issue with TSB and not Lloyds