Cloing LLoyds Reg saver early using 'renew' account .....

steveksullivan

Katiehound said:

well there is this thread but you will need to trawl through it! Perhaps start at the last page and work backwards?

I haven't looked but there might be a list at the beginning 'though of course these things change....

https://forums.moneysavingexpert.com/discussion/6106986/regular-savings-accounts-the-best-currently-available-list#latest

Ah yes, I'd found this one but thought there may be one specifically for the Lloyds account....

Thank you so much for taking the time to post, though!

Bridlington1

The LBG regular saver renewal technique has also been discussed at length in this thread:
https://forums.moneysavingexpert.com/discussion/6428126/lloyds-bank-of-scotland-halifax-regular-monthly-saver-limits/p1

brucefan_2

steveksullivan said:

Wont go into ALL the detail but as usual being told different things by CS reps on the phone .....

Has anybody actually used the 'renew account' option to effectively close a regular saver early by converting it to an easy access saver?

They are telling me the option shouldn't be available.... but it's there.......

Yes, I did it towards the back end of last week.

Once I'd established that it couldn't be done 'in-app' but only 'online', it took just a couple of minutes.

Edited to add: by this, I mean the full process, including opening a new RS

steveksullivan

@Bridlington1 @brucefan_2 @EarthBoy (and others.....!!)

Many thanks to all who replied.

One very last question ..... is there any reason for the 'two step' process to renewing outlined at the beginning of the thread posted by @Bridlington1 ( i.e. empty the account first THEN renew?....) wouldn't just 'renewing' the account empty it with accued interest?

Quote:

The technique used is:

1 Empty the regular saver.

2 Renew account to annother type of saver.

3 Bank adds accrued interest.

4 Remove interest and close account.

5 Bank provides closing statement.

6 Open new regular saver if and when required

(BTW my original reason for closing wasn't to re-open at the higher rate, but merely to reduce internet based 'admin' finding a new home for the matured funds as I will be abroad when account matures - however having read the threads may now do this as I can do it all before I leave ....!)

PRAISETHESUN

steveksullivan said:

@Bridlington1 @brucefan_2 @EarthBoy (and others.....!!)

Many thanks to all who replied.

One very last question ..... is there any reason for the 'two step' process to renewing outlined at the beginning of the thread posted by @Bridlington1 ( i.e. empty the account first THEN renew?....) wouldn't just 'renewing' the account empty it with accued interest?

Quote:

The technique used is:

1 Empty the regular saver.

2 Renew account to annother type of saver.

3 Bank adds accrued interest.

4 Remove interest and close account.

5 Bank provides closing statement.

6 Open new regular saver if and when required

(BTW my original reason for closing wasn't to re-open at the higher rate, but merely to reduce internet based 'admin' finding a new home for the matured funds as I will be abroad when account matures - however having read the threads may now do this as I can do it all before I leave ....!)

Lloyds won't let you close a savings account unless it has a balance of £5 or less. Presumably if you're going to renew and then close, it makes sense to just empty it first?

https://www.lloydsbank.com/savings/help-and-guidance/close-a-savings-account.html

molerat

PRAISETHESUN said:

steveksullivan said:

@Bridlington1 @brucefan_2 @EarthBoy (and others.....!!)

Many thanks to all who replied.

One very last question ..... is there any reason for the 'two step' process to renewing outlined at the beginning of the thread posted by @Bridlington1 ( i.e. empty the account first THEN renew?....) wouldn't just 'renewing' the account empty it with accued interest?

Quote:

The technique used is:

1 Empty the regular saver.

2 Renew account to annother type of saver.

3 Bank adds accrued interest.

4 Remove interest and close account.

5 Bank provides closing statement.

6 Open new regular saver if and when required

(BTW my original reason for closing wasn't to re-open at the higher rate, but merely to reduce internet based 'admin' finding a new home for the matured funds as I will be abroad when account matures - however having read the threads may now do this as I can do it all before I leave ....!)

Lloyds won't let you close a savings account unless it has a balance of £5 or less. Presumably if you're going to renew and then close, it makes sense to just empty it first?

https://www.lloydsbank.com/savings/help-and-guidance/close-a-savings-account.html

Doesn't really make any difference which you do it but I use the renew then empty as it is a one step process, no separate withdrawal of interest, and the only way you can do it with Halifax as you cannot withdraw from their regular savers.

steveksullivan

PRAISETHESUN said:

Lloyds won't let you close a savings account unless it has a balance of £5 or less. Presumably if you're going to renew and then close, it makes sense to just empty it first?

Thanks @PRAISETHESUN

 But isn't the point that RENEWING the account isnt the same as CLOSING ? Sorry if I'm being thick....

@brucefan May I ask if you followed the two step procedure?

@Bridlington1 ??

steveksullivan

molerat said:

Lloyds won't let you close a savings account unless it has a balance of £5 or less. Presumably if you're going to renew and then close, it makes sense to just empty it first?

https://www.lloydsbank.com/savings/help-and-guidance/close-a-savings-account.html

Doesn't really make any difference which you do it but I use the renew then empty as it is a one step process, no separate withdrawal of interest, and the only way you can do it with Halifax as you cannot withdraw from their regular savers.

 

Thanks @molerat - your post crossed with mine !- exactly what I was after  - I was just worried that I might have missed a reason to empty it first ? So you did it the way I suggest, just 'renewing' the account then emptying funds plus interest ..... ?

Section62

steveksullivan said:

One very last question ..... is there any reason for the 'two step' process to renewing outlined at the beginning of the thread posted by @Bridlington1 ( i.e. empty the account first THEN renew?....) wouldn't just 'renewing' the account empty it with accued interest?

The renewal process has the potential to go wrong, leaving funds locked in an account which can't be accessed for 'x' days until Lloyds customer services can sort it out.  Since withdrawals from the Lloyds RS are permitted, it makes sense to move the money first, and only then start the renewal process.  That way it is only the accrued interest you won't have immediate access to if Lloyds stuff up the renewal process.  (I'm not aware of any Lloyds stuff ups with renewals, but there's always a first time).  As a general rule, I would do things I know I'm allowed to do and work Ok, before doing something that might be somewhat 'grey' and difficult to explain to CS staff.

Renewing to an easy access type doesn't empty the account.  It just changes the account type and the T&C's that apply, and results in any accrued interest to date being added to the account.

steveksullivan

Ok  - sorry if I've made a bit of a meal of this but - success, and followed the advice of @Section62 and others and did two step.

Transfer out of balance worked fine  then on the renewal, a bit worried at first as I asked for the interest to go to my LLoyds current account and it didn't appear 'instantly', but a quick logout-and-login and it was there.

The 'renewed' reg saver is still listed as a reg saver  - anyone know when it will change name ? ....overnight?

EDIT: Scrap that !!! another logout and login and name has changed ..... closing it now.

Thanks again to everyone as usual ......