LLoyds ups rate to 6.25% on Club LLoyds

MisterMotivated

35har1old said:

MisterMotivated said:

Well now I have a dilemma as I'm 5/6 months into the year for both CL monthly and regular monthly savers, earing 5.25% and 4.50% respectively.  I'll have to decide if I can make good use of/find a decent home for the ~£3,000 that would become available if I renewed both accounts to the higher rates now...

What where you going to do at maturity?

Repay part of my 0% credit card balances as 2 offers expire around December and I'm running out of stoozing BT options.  I'm going to keep the monthly savers as they are for now

dcs34

Whilst there is the obvious issue that moving money out of the current regular saver rates into the current easy access savings rates might mean less interest over the next 12 months, may also be worth taking account of the risk that 6.25% / 5.25% rates might not be available this time next year? 

Math's is too complicated for me but seeing as my monthly savers were relatively new, I could put the early maturing funds into a LISA, and next year will likely be over the PSA, it seemed to make sense just to do it and secure the higher rates.

MisterMotivated

I agree it makes sense if the account is relatively new.  Had I been earlier into my fix, I probably would have renewed, but I don't think it makes much sense for me at the current stage. 

In terms of future rate availability, anything could happen thist time next year, so it seems pointless trying to predict.  6.25% might not be available but, 5-7 months from now, the rate could also be increased to 7/8/9%.

35har1old

dcs34 said:

35har1old said:

EarthBoy said:

35har1old said:

But only for new customers

Also for existing customers if you "renew" your existing Club Lloyds Monthly Saver to an ordinary savings account (Club Lloyds Saver or Easy Saver) and then open a new Club Lloyds Monthly Saver. 

However, you will only be able to put £400 in the new Club Lloyds Monthly Saver, so you need to find a home with a decent interest rate for the rest of your savings from the old account, or it might not be worth changing.  

The ordinary Lloyds Monthly Saver has now increased to 5.25 % (from 4.50%) and you can have that in addition to the Club Lloyds Monthly Saver.

When do you get the interest you have earned to date

It'll be added to your new easy access savings product straight away

When you go to the accounts page it shows the balance correctly but if you view the statement there is no record of payment being made. It states the the transaction did not have your name on it at that time

Band7

MisterMotivated said:

 

…, the rate could also be increased to 7/8/9%.

More potential opportunity for people to jump head first into  ‘upgrading’ at a loss, I suppose 😀

I am happy to sit it out myself on 5.25% as I’d make a £30-odd guaranteed loss over the next 5 months, and I have no room to play with tax savings. 

Tom_Hendo

Can someone explain the 'renew' process to me.

From what I read you can effectively close your account, gain the interest accrued so far, and open a new account seemlessly. Which seems risk free?

Others seem to be commenting on the loss of interest and how it would track when putting the 'excess' from £400 into an easy access. Why would this matter if you already gained the interest for the current deposits?

Am I missing something?

k_man

Tom_Hendo said:

Can someone explain the 'renew' process to me.

From what I read you can effectively close your account, gain the interest accrued so far, and open a new account seemlessly. Which seems risk free?

Others seem to be commenting on the loss of interest and how it would track when putting the 'excess' from £400 into an easy access. Why would this matter if you already gained the interest for the current deposits?

Am I missing something?

You can't transfer the balance from the old RS to the new one, so you are starting from zero again, only topping up monthly, so while the interest rate is higher, the balance is lower.

Tom_Hendo

k_man said:

Tom_Hendo said:

Can someone explain the 'renew' process to me.

From what I read you can effectively close your account, gain the interest accrued so far, and open a new account seemlessly. Which seems risk free?

Others seem to be commenting on the loss of interest and how it would track when putting the 'excess' from £400 into an easy access. Why would this matter if you already gained the interest for the current deposits?

Am I missing something?

You can't transfer the balance from the old RS to the new one, so you are starting from zero again, only topping up monthly, so while the interest rate is higher, the balance is lower.

Ahh got it now of course! Thanks.

Still seems tempting to me even though I'm 4 months in. I actually closed my Club Lloyds so it's going to be a lot of effort to get this sorted. Wonder whether the effort for the pennies difference is worth it at this point! 

Rudyson

wiseonesomeofthetime said:

FWIW I am 6 months in on both and will be retaining both. 

Me too...

trickydicky14

Rudyson said:

wiseonesomeofthetime said:

FWIW I am 6 months in on both and will be retaining both. 

Me too...

Me too...