Lloyds/Bank of Scotland/Halifax regular/monthly saver limits

AmityNeon

10_66 said:

AmityNeon said:

Good idea @k_man for something easily and generically applicable. Here's a much easier spreadsheet to interpret, for the three LBG Regular Savers (RS). It assumes deposits on the first of the month over 12 equal periods.

Check your interest rates, then look for the row representing how many months/deposits your current RS has. If the result is greater than 0 (yellow), it's mathematically beneficial to close/renew. If it's less than or equal to 0 (red), then it's not.

The chart uses the following formula:

(n − 12) * [(n − 13) * x + (2 * n * y)] > 0

X = higher RS interest rate minus current RS interest rate
Y = current RS interest rate minus lower (or easy access) interest rate
N = number of months/deposits of current RS

It essentially compares the average interest of keeping your RS for the full 12 months, versus the blended average interest of:

1. Keeping your RS for a variable number of months (less than 12)
2. Starting a new RS and contributing for the remaining months (up to and including month 12)
3. The balance from the first RS being transferred to a lower interest account for the remaining months (up to and including month 12)

I’m sorry to be so dense, I thought I was getting my head around your first two spreadsheets, but then on the third one I came unstuck.  My situation for Lloyds x 2 and BoS is that I’ve been drip feeding since October 22.  If I were to close now and re-open, the accumulated balances would go into EA at 3.25%.  I thought, looking at the first of your spreadsheets, that I’d either be up around £15 if leave as it is in the 12 month example, or up by roughly the same amount in the second spreadsheet that takes you to March 2024, if re-opened in March 2023.  But, I think I must be reading this third spreadsheet wrong because I don’t seem to be able to get the same results from the figures shown in that, the figure I think I should be looking at shows -102 (Lloyds Club).  Can you put me out of my misery, please?

The numbers here don't represent literal interest because the formula is a direct comparison, independent of contribution amounts. (As the monthly contribution is considered constant in both scenarios, it literally cancels itself out in the comparison.) In a general sense, the higher or lower the result (away from 0), the better or worse it is to close/renew. -102 is one of the lowest figures, meaning it's one of the worst months to close/renew.

Here are the formulas for calculating interest in both scenarios individually so you can make your own separate comparison (e.g. the first minus the second).

12 Months

(equal periods of the same amount at the same rate)

m * r * 6.5

m = monthly contribution (e.g. 400)
r = rate of interest (e.g. 5.25% = 0.0525)

Blended Interest over 12 Months

(quoted as #1 #2 #3 above)

m * {(n − 12) * [(n − 13) * x + (2 * n * y)] + (156 * r)} / 24

Ensure differences in interest rates are calculated in decimals, e.g. 0.0525 - 0.0325 = 0.02.
(The chart above multiplies results by 100 for visualisation.)

kaMelo

(Removed by Forum Team).

On the home screen you have a list of your accounts,  look to the right of the regular saver you wish to renew and you'll see three options. 
"View Statements"
"Payments and Transfers"
"More Actions"

Click on "More Actions" and  another list will appear with four options, the  bottom one being "Renew Account"
When you choose "renew the account" you'll be taken to a screen to choose which account to renew it into. Choose easy saver and click renew. Once renewed log out and back in and  your regular saver is now an easy saver with the same sort code and balance. You are now free to open a new regular saver at the improved rate.

You can empty the regular saver either before you renew or after, it makes no difference.  What  you cannot do is close the account with a balance over £5

pecunianonolet

kaMelo said:

(Removed by Forum Team)

On the home screen you have a list of your accounts,  look to the right of the regular saver you wish to renew and you'll see three options. 
"View Statements"
"Payments and Transfers"
"More Actions"

Click on "More Actions" and  another list will appear with four options, the  bottom one being "Renew Account"
When you choose "renew the account" you'll be taken to a screen to choose which account to renew it into. Choose easy saver and click renew. Once renewed log out and back in and  your regular saver is now an easy saver with the same sort code and balance. You are now free to open a new regular saver at the improved rate.

You can empty the regular saver either before you renew or after, it makes no difference.  What  you cannot do is close the account with a balance over £5

At what point will the accrued interest be added? Is that part of the account conversion process or when the easy saver is closed?

Band7

pecunianonolet said:

kaMelo said:

Bojax said:

nottsphil said:

Bojax said:

“ 2. Renew account to another type of saver.” How does that work exactly?

Maybe read the first four replies to the thread?

I did, you numpty.  I'm quoting from the fourth reply right there.  Maybe *you* should try being less of a PITA and more helpful instead.
I'm not too keen to do step 1. "Empty the Account" , until after I understand what "Renew the account" means.  Is that an option that comes up only when an account is empty?  I don't currently see a "renew account" option anywhere.

On the home screen you have a list of your accounts,  look to the right of the regular saver you wish to renew and you'll see three options. 
"View Statements"
"Payments and Transfers"
"More Actions"

Click on "More Actions" and  another list will appear with four options, the  bottom one being "Renew Account"
When you choose "renew the account" you'll be taken to a screen to choose which account to renew it into. Choose easy saver and click renew. Once renewed log out and back in and  your regular saver is now an easy saver with the same sort code and balance. You are now free to open a new regular saver at the improved rate.

You can empty the regular saver either before you renew or after, it makes no difference.  What  you cannot do is close the account with a balance over £5

At what point will the accrued interest be added? Is that part of the account conversion process or when the easy saver is closed?

At the point of renewal.

Bridlington1

aaj123 said:

PloughmansLunch said:

aaj123 said:

Is it possible for me to open a BoS monthly saver while having a current account only with Lloyds? Already have the club lloyds and lloyds regular savers. 

No, I think only Halifax and BoS are cosy with each other in their apps. Why not just open a bog standard BoS current account? Should only take a couple of minutes at most

Yeah sure. Just wary of making myself ineligible for their next current account switch bribe. 

I doubt opening a BOS current account will make you ineligible for the next switch offer. All the LBG switching offers I can recall have allowed existing customers to take advantage of them.

10_66

AmityNeon said:

....The numbers here don't represent literal interest because the formula is a direct comparison, independent of contribution amounts. (As the monthly contribution is considered constant in both scenarios, it literally cancels itself out in the comparison.) In a general sense, the higher or lower the result (away from 0), the better or worse it is to close/renew. -102 is one of the lowest figures, meaning it's one of the worst months to close/renew....

Thank you AmityNeon, I hadn't realised the numbers didn't represent literal interest, so it makes sense now.  I'm hopeless with spreadsheets, I'm afraid I'm rather numerically dyslexic. 

MDMD

Bridlington1 said:

aaj123 said:

PloughmansLunch said:

aaj123 said:

Is it possible for me to open a BoS monthly saver while having a current account only with Lloyds? Already have the club lloyds and lloyds regular savers. 

No, I think only Halifax and BoS are cosy with each other in their apps. Why not just open a bog standard BoS current account? Should only take a couple of minutes at most

Yeah sure. Just wary of making myself ineligible for their next current account switch bribe. 

I doubt opening a BOS current account will make you ineligible for the next switch offer. All the LBG switching offers I can recall have allowed existing customers to take advantage of them.

I don’t recall there ever being a BOS switch offer anyway..

Bridlington1

MDMD said:

Bridlington1 said:

aaj123 said:

PloughmansLunch said:

aaj123 said:

Is it possible for me to open a BoS monthly saver while having a current account only with Lloyds? Already have the club lloyds and lloyds regular savers. 

No, I think only Halifax and BoS are cosy with each other in their apps. Why not just open a bog standard BoS current account? Should only take a couple of minutes at most

Yeah sure. Just wary of making myself ineligible for their next current account switch bribe. 

I doubt opening a BOS current account will make you ineligible for the next switch offer. All the LBG switching offers I can recall have allowed existing customers to take advantage of them.

I don’t recall there ever being a BOS switch offer anyway..

I suppose there is one in a way. If you switch a current account to BOS they give you a 3 month 0% overdraft (subject to approval) so although not officially a switching offer I would consider it a switching perk as it gives you a good stoozing opportunity.

aaj123

PloughmansLunch said:

aaj123 said:

Is it possible for me to open a BoS monthly saver while having a current account only with Lloyds? Already have the club lloyds and lloyds regular savers. 

No, I think only Halifax and BoS are cosy with each other in their apps. Why not just open a bog standard BoS current account? Should only take a couple of minutes at most

Surprisingly, I was allowed by the BoS app to apply for and open a monthly saver despite me not having a current account with either Halifax or BoS. I was able to register for BoS internet banking using my Halifax credit card and then I was straightaway able to open a monthly saver. I was expecting my application to be rejected because it did say on the eligibility screen that I should have an existing current account. But they still opened the monthly saver account anyway for me.

Wondering if this has something to do with me having a Lloyds current account even though that account doesn't show up in the Halifax or BoS apps.

allegro120

aaj123 said:

PloughmansLunch said:

aaj123 said:

Is it possible for me to open a BoS monthly saver while having a current account only with Lloyds? Already have the club lloyds and lloyds regular savers. 

No, I think only Halifax and BoS are cosy with each other in their apps. Why not just open a bog standard BoS current account? Should only take a couple of minutes at most

Surprisingly, I was allowed by the BoS app to apply for and open a monthly saver despite me not having a current account with either Halifax or BoS. I was able to register for BoS internet banking using my Halifax credit card and then I was straightaway able to open a monthly saver. I was expecting my application to be rejected because it did say on the eligibility screen that I should have an existing current account. But they still opened the monthly saver account anyway for me.

Wondering if this has something to do with me having a Lloyds current account even though that account doesn't show up in the Halifax or BoS apps.

I doubt having Lloyds current account has anything to do with it.  It is probably one of those conditions/restrictions they advertise but do not enforce.