Only £500 Savings Says Lloyds Boss

jimjames

The boss of Lloyds Banks says most customers have under £500 savings.

https://www.bbc.co.uk/news/business-62057301

Is this a sign of low savings amounts or that Lloyds customers are sensible and avoid the paltry rates that they offer on savings? 

Takedap

jimjames said:

The boss of Lloyds Banks says most customers have under £500 savings.

https://www.bbc.co.uk/news/business-62057301

Is this a sign of low savings amounts or that Lloyds customers are sensible and avoid the paltry rates that they offer on savings? 

More likely to be a sign that most aren't as financially savvy as the people who populate these boards.

Exodi

Takedap said:

jimjames said:

The boss of Lloyds Banks says most customers have under £500 savings.

https://www.bbc.co.uk/news/business-62057301

Is this a sign of low savings amounts or that Lloyds customers are sensible and avoid the paltry rates that they offer on savings? 

More likely to be a sign that most aren't as financially savvy as the people who populate these boards.

Indeed, this isn't the first article I've seen suggesting such a thing. An early article I read today suggested about 80% of people have less than £500 in savings.

I don't think it's that hard to believe unfortunately.

Swipe

In their current account that pays no interest maybe

Exodi

Edit: just read the article - it cited the same figure "80% of individuals and UK customers and families have less than £500 pounds worth of savings in their current account and their savings account."

Exodi

Swipe said:

In their current account that pays no interest maybe

I hardly think their 0.2% savings account is any better.

Plus, it's not just Lloyds.

Swipe

If that's the case, and I don't believe it for one second, then the country is in serious trouble.

lordmountararat

Lloyds do pay interest on their classic current account up to a balance of £5,000. I used to receive around £17 - £18 a month, but they have gradually reduced the interest to a derisory amount. I closed my savings account with them and put the money into Premium Bonds, where I do win at least £25 - £50 most months, with the dream (unlikely) of a big win.

Exodi

lordmountararat said:

Lloyds do pay interest on their classic current account up to a balance of £5,000. I used to receive around £17 - £18 a month, but they have gradually reduced the interest to a derisory amount. I closed my savings account with them and put the money into Premium Bonds, where I do win at least £25 - £50 most months, with the dream (unlikely) of a big win.

How many centuries ago was this that you were earning effectively 4.2% AER interest on your current account?

Club Lloyds currently pays about 0.78%, I don't remember it being significantly higher than this... Lloyds has seldom been competitive.

But your point about their derisory savings interest (which currently sits at 0.2%) and premium bonds is completely relevant, because the figures in this article do not account for money held in external accounts.

It's likely that a significant amount of people hold their savings outside of Lloyds for the reasons above.

Swipe

Exodi said:

lordmountararat said:

Lloyds do pay interest on their classic current account up to a balance of £5,000. I used to receive around £17 - £18 a month, but they have gradually reduced the interest to a derisory amount. I closed my savings account with them and put the money into Premium Bonds, where I do win at least £25 - £50 most months, with the dream (unlikely) of a big win.

It's likely that a significant amount of people hold their savings outside of Lloyds for the reasons above.

In that case, the article just clickbait

GSP

Think it’s general that 1% of people in volume probably have 90% of savings value.