Interest Rate Calculation

alandaniel132

For Lloyds bank, young saver, it stated: 

1.44% gross interest on your balance between £1 - £4,999

0.01% gross interest on your remaining balance above £5,000

So if my balance is £5,000, it will be 0.01%?

Should I put £4,999 as the balance?

TheAble

1.44% on the first £4999 then 0.01% on the excess.

alandaniel132

TheAble said:

1.44% on the first £4999 then 0.01% on the excess.

so I will put £4,999 to get maximum 1.44%

RG2015

If, for example, you have a balance of £5,099.00, you will earn £72.00 per annum made up as follows.

£4,999 @ 1.44% = £71.99
£100 @ 0.01% = £0.01
Total = £72.00

Any amount above £5,000 will earn virtually nothing so you should keep the balance at or below £5,000 as you have said.

alandaniel132

RG2015 said:

If, for example, you have a balance of £5,099.00, you will earn £72.00 per annum made up as follows.

£4,999 @ 1.44% = £71.99
£100 @ 0.01% = £0.01
Total = £72.00

Any amount above £5,000 will earn virtually nothing so you should keep the balance at or below £5,000 as you have said.

Thanks
So if I put £5,000

£4,999 @ 1.44% = £71.99
£1 @0.01 = £0

RG2015

The answer is yes, although I cannot find this account at this rate on the Lloyds bank website.

alandaniel132

RG2015 said:

The answer is yes, although I cannot find this account at this rate on the Lloyds bank website.

it is called Young Saver account in Lloyds bank, similar to Halifax

RG2015

alandaniel132 said:

RG2015 said:

The answer is yes, although I cannot find this account at this rate on the Lloyds bank website.

it is called Young Saver account in Lloyds bank, similar to Halifax

Okay thanks. I was just saying that I cannot see this account on the Lloyds bank website.

xylophone

https://www.lloydsbank.com/savings/child-saver.html

Rate seems to have changed?

• Earn 1.00% AER/1.00% gross variable on balances of £1-£5,000.
• Earn 0.01% AER/0.01% gross variable on any excess above £5,000.

wmb194

xylophone said:

https://www.lloydsbank.com/savings/child-saver.html

Rate seems to have changed?

• Earn 1.00% AER/1.00% gross variable on balances of £1-£5,000.
• Earn 0.01% AER/0.01% gross variable on any excess above £5,000.

This for new accounts. The 1.44% rate is correct for accounts opened before whenever this new rate was introduced.