Club lloyds monthly saver matured

dreaMer001

My club lloyds monthly saver matured yesterday. it automatically changed to a standard saver earning pittence interest so moved the money to Santander savings account earning 5.08%.

I opened a new Club lloyds monthly saver today. However, when i try to deposit £400 it gives an error 'the payment exceeds the montly limit for the destination account'. Is this because I've already deposited £400 this month to the old (matured and closed) monthly saver?

If it is, should I close the newly opened montly saver, then wait till around 20th next month (in order to maximise interest as it enables me to make 13x£400 deposits) then open a new monthly saver?

I received a letter from lloyds to notifiy about the maturing monthly saver. It just says 'once your Club lloyds Monthly saver has reached the end of the term of 20 October 2023 you can open a new Club lloyds monthly saver ...'. Says nothing about not being able to deposit money if I had made the full £400 deposit in the last (current) month and open an account immediately upon maturity.

Btw, the interest rate on offer when I opened new account today was 5.25%. Same as last year

Costabit

5.25% ?

Isn’t that the rate for the regular Monthly Saver
The Club Lloyds one is still showing 6.25%

milton1970

Same actions this week with me but no issues in opening new account & making deposit 

Club Lloyds MS is 6.25% as others have said so suspect you have opened wrong account .. 

GrubbyGirl_2

I think you'll find you can only open one club Lloyds monthly saver a year so if you close the one you've just opened you'll not be able to open another for 12 months.  I'd call them and ask to transfer money in - they should be able to do it for you

wmb194

GrubbyGirl_2 said:

I think you'll find you can only open one club Lloyds monthly saver a year so if you close the one you've just opened you'll not be able to open another for 12 months.  I'd call them and ask to transfer money in - they should be able to do it for you

No, you can. Only TSB seems to enforce this same term (it inherited it from when it used LBG systems).

dreaMer001

Thank you everyone. Yes, I've opened the wrong account (the Lloyds monthly saver and not the Club Lloyds monthly saver).

Just now was able to open the correct one (Club Lloyds monthly saver) paying 6.25% interest and make the initial deposit of £400. 

I was worried that we can only have one monthly saver account (irrespective of whether it's standard monthly saver or club lloyds monthly saver), but from my experience (and the terms), we can have one of each. 

If it was one monthly saver only permitted, goodness know how long I'd have to wait after closing an account in order to re-open a new one. Past experience with First Direct Monthly saver where I needed to close a monthly saver then open a new account was not good. Had to wait a few days. Needed to close because I had deposited less than the maximum (in the starting month) and there was no way to make another deposit to supplement initial deposit (payments can only be made via standing order). 

EarthBoy

dreaMer001 said:

Past experience with First Direct Monthly saver where I needed to close a monthly saver then open a new account was not good. Had to wait a few days. Needed to close because I had deposited less than the maximum (in the starting month) and there was no way to make another deposit to supplement initial deposit (payments can only be made via standing order). 

You didn't need to close the account.  Although you can only make one payment each month to the First Direct Regular Saver, where you have paid less than the maximum, you can increase the next month's payment to make up for previous months.  You just need to ring them to do it -you can't do it yourself online, or in the app.

• if you don't pay in the maximum allowed in any month, you can carry over any unused subscriptions and catch up in future months.

https://www.firstdirect.com/savings-and-investments/savings/regular-saver-account/

Shedman

dreaMer001 said:

Thank you everyone. Yes, I've opened the wrong account (the Lloyds monthly saver and not the Club Lloyds monthly saver).

Just now was able to open the correct one (Club Lloyds monthly saver) paying 6.25% interest and make the initial deposit of £400. 

I was worried that we can only have one monthly saver account (irrespective of whether it's standard monthly saver or club lloyds monthly saver), but from my experience (and the terms), we can have one of each. 

If it was one monthly saver only permitted, goodness know how long I'd have to wait after closing an account in order to re-open a new one. Past experience with First Direct Monthly saver where I needed to close a monthly saver then open a new account was not good. Had to wait a few days. Needed to close because I had deposited less than the maximum (in the starting month) and there was no way to make another deposit to supplement initial deposit (payments can only be made via standing order). 

And don't forget (although you may already be aware of course) that as you've funded the new Club Lloyds Monthly Saver at the end of the month you can set up a standing order to pay in next month's on 1 Nov rather than waiting until 21/22 Nov, and monthly on 1st thereafter, to maximise interest and also be able to make 13 payments (which Lloyds allows).

oldfella

The value of a 13th month in the regular saver over leaving it in a 5% savings account is about 30p. 

ColdIron

The value of 13 payments is not in the last payment but in the first

grumbler

oldfella said:

The value of a 13th month in the regular saver over leaving it in a 5% savings account is about 30p. 

Is this a fact?

On the back of an envelope: average balance can go up by £400. The extra interest can be up to about 1.25%*£400=£5. This is the best case scenario when the account is opened at the end of the month and the second deposit is made  at the start of the next month.

Of course, if the account is opened today there is no point in postponing the first deposit. Neither is it worth postponing opening the account.

Or was it the normal 5.25% regular saver that you meant, not 6.25% Club one? But even in this case it's up to about £1, not 30p.