The Top Fixed Interest Savings Discussion Area

Malchester

Just noticed that Lloyds Bank have a new fixed rate account where they pay the interest upfront into your nominated account for you to use as you wish. Rate for club customers is not great. - 4.2%. Maybe an attempt to get round the increase on savings tax rate next financial year. The more I think about it the worse deal it becomes.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82161316#Comment_82161316

Lloyds Upfront

Just because it's so weird and I think it'd be funny I'm tempted to open one just to deposit the minimum but it might make sense if you're in a situation where you know/anticipate that you'll move into a higher tax band next tax year.

We could also talk about the time value of money and reinvesting the interest but I don't think it makes much difference at this relatively low rate.

https://www.lloydsbank.com/savings/upfront-interest-online-fixed-bond.html

Eco_Miser

https://forums.moneysavingexpert.com/discussion/comment/82161596#Comment_82161596

might make sense if you're in a situation where you know/anticipate that you'll move up the tax bands next tax year.

A lot of people will be moving from 20% to 22% or 40% to 42% on savings interest next year, so this account may suit them, although the rate is rather low.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82161634#Comment_82161634

Lloyds Upfront

That would be too marginal at the offered rate versus the best in the market*, I'm thinking from being e.g., a non-taxpayer to basic or higher rate.

*5.12% but via its MBNA brand even Lloyds is offering 5.01% for one year.

Eco_Miser

https://forums.moneysavingexpert.com/discussion/comment/82161637#Comment_82161637

Lloyds Upfront

That's true, but considering that some posters concentrate on saving tax, I'm sure there would be some who would take that tax saving without considering paying tax on a a higher rate would be better.