Do Lloyds bank care where I have my investments?

Aminatidi

Currently I use Lloyds Bank for normal banking - just a free current account and normal credit card that is automatically paid in full each month.

Usually anything between £2-10K in the account.

I have about £500K invested with IWeb/now Scottish Widows.

Can Lloyds Bank "see" this and if I transferred some/all of it to another platform like II will it make any difference to how Lloyds "see" me in terms of credit card limits or rate offered or anything else?

My banking needs are simple so I don't care about or need a fancy bank account but I wouldn't like to find I suddenly find my credit card limit gets cut in half simply because I've moved investments way from that broad Lloyds Banking Group umbrella.

Hope that makes sense!

HedgehogRulez

no, they dont care

rob37uk

Why would you have any more than a few pence in a current account? Have a good overdraft limit with Lloyds to cover your largest direct debit/ standing order then keep your money earning interest, at present 5%, in multiple Cahoot Sunny Day Saver accounts.

Surely this makes sense.

Aminatidi

Not being funny Rob but it's just personal preference - I like sleeping at night :)

Just keen on understanding if some algorithm in Lloyds Bank (been with them decades) is suddenly going to change my profile if a ton of money disappears from being managed by Lloyds Banking Group.

rob37uk

https://forums.moneysavingexpert.com/discussion/comment/81894624#Comment_81894624

They really won't care. They are making enough money from you by paying low or no interest on any money held in current accounts. You'll be fine.

Ayr_Rage

Wow, not very MSE having so much in a current account, you need an instant access savings that you can move money from instantly.

If you've been with Lloyds for decades you've undoubtedly been missing out for years, they must really love your loyalty.

My current cash position.

NW Flex £24.82, DD for £20 goes out tomorrow, £900 in 6.5% regular savings

Chase £1, no savings there any longer.

Zopa Biscuit 2% £52.35, £39 in DDs going out this week, £1517 in 7.1% regular savings, £59435 in 4.45% instant access.

Mrs_Trellis_of_North_Wales

For a Club Lloyds account, balances between £4,000 to £5,000 receive 3.00% AER (2.96% gross p.a), but there's no interest on balances over £5,000. Would a balance of £5,000 give you enough comfort to sleep at night?

I move high five-figure sums through my Lloyds current account most months, recycling cash between various accounts with other providers, and it hasn't been an problem yet. The only issue might be a £25,000 daily online limit, but you can move more by going into a branch of Lloyds or Halifax with ID and your debit card.

Aminatidi

Appreciate the info but in the nicest way possible way I know how to save money 👍🏼

I often build up a bit of a buffer before moving it to an investment account so it's £2K much more often than it's £10K but it does creep up sometimes.

I'm just interested in the question I posed about the wider Banking Group view of me as a customer and whether it matters if I transferred some/all of the investments to a different platform 😀

Section62

https://forums.moneysavingexpert.com/discussion/comment/81894669#Comment_81894669

You will have a customer profile with Lloyds Bank plc which will contain information about your current account usage. That profile may (almost certainly does) contain information about your use of other LBG products and services, and in turn may be used to decide what products and services they will offer you.

Whether Lloyds Bank would react negatively to you removing your SW investments is anyone's guess. But my guess would be 'no'.

You haven't mentioned any other current accounts or credit cards you have, but as well as being good practice to have a current account with a different banking group (in case of technical problems etc) it would be a way of spreading your risk of any adverse decisions having an impact on you.

E.g. if Lloyds cut your credit limit in half then it wouldn't matter so much if you also have a credit limit with (say) Santander.

But all in all, I doubt Lloyds would reduce your credit card limit becuase you moved your SW investments elsewhere. In my own personal experience having savings and investments with LBG has make no difference to the decisions they make on credit cards and limits.

GeoffTF

Lloyds cares where you hold your investments if you have Private Banking. It is not clear whether they care if you have Mayfair Banking.

ZeroSum

Can you see your investments via the Lloyd's banking app? I know theyve now added any Halifax accounts & vice versa?

Anyhoo, savings dont usually impact on credit ratings. My initial attempt at stoozing, Halifax refused to give me their 0% card that they were offering at the time even though i had a decent amount saved with them. This was because I had no debt, and all the offered me was a credit builder with just a £500 limit which was insulting really.