Total interest for Club Lloyds?

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?

Comments

  • Middle_of_the_Road
    Middle_of_the_Road Posts: 585
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    edited 1 December 2023 at 3:50PM
    That's what I got it to...
       59.985+
       30.03
    = 90.015
  • 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
    ColdIron Posts: 8,690
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    edited 1 December 2023 at 3:48PM
    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
    grumbler Posts: 58,629
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    edited 1 December 2023 at 3:53PM
    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
    AmityNeon Posts: 893
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    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
    Eco_Miser Posts: 4,707
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    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.



    Eco Miser
    Saving money for well over half a century
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