Total interest for Club Lloyds?

TractorFactor

If you have the full £5,000 in the account:
1.50% on £1 - £3999
3.00% on £4000-£5000

how much interest will you get at the end of the month?
My math is a little rusty.
Would it be:
£60 (lower rate) + £30 (higher rate), then divide that by 12, making £7.50 a month, is that correct?

Middle_of_the_Road

That's what I got it to...
   59.985+
   30.03
= 90.015

TheMilkmansDad

assuming £5,000 is in the account for the whole month then I agree with £7.50 (+/- a few pence depending on month length).

ColdIron

Close. that 1.50%/3.00% is AER. You'll get 1.49% and 2.96% gross so a shade less and the number of days in a month varies

grumbler

More or less correct, but both 1.5% and 3% are AER, i.e. assume compounding, that means that the balance has to remain below £5K. And even in this case it's possibly more complicated for balances above £4K.
If the balance is £5K, the interest is added to the balance, but you don't get interest on interest. In this case you have to use 'gross p.a.' rates - 1.49% and 2.96% accordingly,

AmityNeon

Basically, that means don't leave £5,000 sitting in a Club Lloyds account. ~1.784% is a terrible rate at this time.

Eco_Miser

From actual payments, it can vary from £7.09 to £8.06 depending on month length (Lloyds months can be 34 days long).

Having £5,000 sitting there earning interest and ready to fund all my Regular Savers was useful, but not at the current differential to simple easy savers.