Lloyds and Halifax reducing interest on Club and Rewards

ColdIron

Only 0.75% each but unwelcome nevertheless

It's the same on Halifax Rewards

friolento

I don’t keep money in current accounts when I can get much higher interest in instant access savings accounts. I do all my day to day spending on cashback credit cards, paid off in full each month, and am keeping track of any SOs and DDs so I can move the required amounts from the savings to the current account as and when needed.

I also have a large overdraft on my current account, so no SOs/DDs fail, and I get notified by text before 9am if the current account got overdrawn. I then have another 12 hours to move enough money from savings to current. At present, I use Zopa for savings, but have used Cahoot and Chase in the past. All of which support instant transfers.

Yorkie1

@ColdIron had you noticed you hadn't edited your name in your screenshot?

Eco_Miser

ColdIron said:

Only 0.75% each but unwelcome nevertheless

It's the same on Halifax Rewards

Or to put it another way, a 50% reduction in the rate.

You might get the impression LBG aren't interested in encouraging their customers to keep high balances in their current accounts.

Section62

Unsurprisingly the same also applies to BoS Vantage accounts.

My fault probably. Following the loss of cashback on my 123Lite account I'd been consolidating my direct debits onto a BoS Vantage account to scrape a little interest off the float kept there to avoid DD's failing.  The last DD move completed this month.

steven141

Section62 said:

Unsurprisingly the same also applies to BoS Vantage accounts.

My fault probably. Following the loss of cashback on my 123Lite account I'd been consolidating my direct debits onto a BoS Vantage account to scrape a little interest off the float kept there to avoid DD's failing.  The last DD move completed this month.

There is always Kroo which still pay interest 2.65% AER the only thing is that you would have to manually change your direct debits as they aren't part of the current account switching service but are fcs protected. I use them for storing my spending money. They have pots as well which all earn the same interest rate.

wmb194

I'm not seeing anything about this reduction applying to Lloyds Premier accounts so perhaps this is an attempt to increase the differentiation between the two?


https://www.lloydsbank.com/current-accounts/all-accounts/lloyds-premier.html

ColdIron

The Club Lloyds still shows the current state on the website. My image was from an email and due to come into effect 31/03. Maybe you'll get an email, or perhaps not

wmb194

ColdIron said:

The Club Lloyds still shows the current state on the website. My image was from an email and due to come into effect 31/03. Maybe you'll get an email, or perhaps not

Lloyds is usually good at flagging future changes and the reduction is mentioned on the Club page:

https://www.lloydsbank.com/current-accounts/all-accounts/club-lloyds.html

Nasqueron

steven141 said:

Section62 said:

Unsurprisingly the same also applies to BoS Vantage accounts.

My fault probably. Following the loss of cashback on my 123Lite account I'd been consolidating my direct debits onto a BoS Vantage account to scrape a little interest off the float kept there to avoid DD's failing.  The last DD move completed this month.

There is always Kroo which still pay interest 2.65% AER the only thing is that you would have to manually change your direct debits as they aren't part of the current account switching service but are fcs protected. I use them for storing my spending money. They have pots as well which all earn the same interest rate.

Santander Edge with the saver is better for up to £4000 at 6% - avoid the fee by not setting up DDs

I use them as my rainy day fund and Kroo for any excess

Yorkie1

Eco_Miser said:

ColdIron said:

Only 0.75% each but unwelcome nevertheless

It's the same on Halifax Rewards

Or to put it another way, a 50% reduction in the rate.

You might get the impression LBG aren't interested in encouraging their customers to keep high balances in their current accounts.

Indeed. I have the Club Lloyds regular saver at 6.25%, but have pretty much moved my funds out of the current and limited withdrawal accounts into Cahoot, owing to interest rates dropping