Timing for Lloyds monthly club saver

Yorkie1

I have a monthly regular Club Lloyds saver ($400pm max @ 6.25%) which has just matured.

This is one of the accounts where you can get a 13th payment in if you open the account close to the end of a month and then fund it again early into the next month (and thereafter for the remaining 12 months).

However, the T&Cs say that your money must be credited to the account by the 25th of the month. Does this mean that if I opened and funded it with the first £400 today / tomorrow, it wouldn't count for November - and would count for December - so I wouldn't be able to get a 13th payment in?

Have I left it too late for this month? I wondered if anyone else had experience of this?

dcs34

Yorkie1 said:

I have a monthly regular Club Lloyds saver ($400pm max @ 6.25%) which has just matured.

This is one of the accounts where you can get a 13th payment in if you open the account close to the end of a month and then fund it again early into the next month (and thereafter for the remaining 12 months).

However, the T&Cs say that your money must be credited to the account by the 25th of the month. Does this mean that if I opened and funded it with the first £400 today / tomorrow, it wouldn't count for November - and would count for December - so I wouldn't be able to get a 13th payment in?

Have I left it too late for this month? I wondered if anyone else had experience of this?

From my memory the 'credit the account by the 25th of the month' rule was really Lloyds being over-cautious to make sure that standing orders will definitely pull through before the end of the month (i.e. counting for a 4-day non-working block in Easter).

If you make the first payment manually then it should go through within the same day?

flaneurs_lobster

Yorkie1 said:

Have I left it too late for this month? I wondered if anyone else had experience of this?

Just checked mine, first payment credited on 30/04, second on 01/05/25. 

It's not enforced, that rule is probably there to allow for people with credits by standing order set for late in the month not to miss a month if a long bank holiday backs up against a weekend and delays payment.

PRAISETHESUN

As above, it's not enforced. I've definately opened Lloyds RS accounts before on the last day of the month, made a manual payment, made another payment the next day after the next month starts, and continued to pay in for the remainder of the term for 13 total payments.

Yorkie1

Fantatsic, thanks everyone. Guess what I'm doing this evening ... !

Yorkie1

Yorkie1 said:

Fantatsic, thanks everyone. Guess what I'm doing this evening ... !

And success

retiredbanker1

£400 at 6.25% for 2 days = 1.3 pence.

So if you do it will not change your life!

Yorkie1

Haha, well there is that!!

Middle_of_the_Road

retiredbanker1 said:

£400 at 6.25% for 2 days = 1.3 pence.

So if you do it will not change your life!

It's not the 2 days that make the difference. It's having 2 ×£400 earning interest for the full twelve months.

pochisoldi

retiredbanker1 said:

£400 at 6.25% for 2 days = 1.3 pence.

So if you do it will not change your life!

You open the account at the end of the month, make the first monthly payment immediately, and then the subsequent payments all go in on the first, so every payment starting with the second earns interest for longer.

Compared to opening an account on the first of the month, if you open the account on the 28th
The first payment earns interest for a year (regardless of start date).
The 2nd to 12th payments each earn an additional 27 days interest
A 13th payment becomes possible, and that earns interest for 27 days.

So all in all you end up with £400 earning interest at 6.25% for an additional 324 days = £22.11 by my reckoning.

Opening regular savers at the end of the month, then funding on the 1st is the oldest trick in the book, where the account conditions specify "£x per calendar month".

Ballard

pochisoldi said:

retiredbanker1 said:

£400 at 6.25% for 2 days = 1.3 pence.

So if you do it will not change your life!

So all in all you end up with £400 earning interest at 6.25% for an additional 324 days = £22.11 by my reckoning.

I’m not against doing this, but you’d also need to factor in loss of interest from the funding account (as you do for the whole of the RS balance). I earn 3.8% in an ISA, and I’m sure that there are bigger payers out there, so the gain for me to do this is more like £8.66. Better than nothing, but I wouldn’t bother.