Lloyds Online Bond, with upfront interest.

EarthBoy

Lloyds has launched an Online Fixed Bond which pays you the 4% interest upfront.

https://www.lloydsbank.com/savings/upfront-interest-online-fixed-bond.html

eskbanker

Interesting title for that link! (edit: it showed as "Lloyds Bank - Internet Banking - Error" but doesn't seem to anymore)

This could be very useful for those needing to juggle interest income across multiple tax years…

Notepad_Phil

https://forums.moneysavingexpert.com/discussion/comment/82169554#Comment_82169554

That title showed with the 'error' showed for me too - it only went to a sensible title when I refreshed the page.

Edited to add that looking again it seems to start off okay but then after a few seconds it puts the 'error' title up.

EarthBoy

I've tried editing the link, but however I post it, it always shows "error". It does work, though, when you click on it.

I've added a screenshot.

wmb194

4.2% if you have a Premier or Private account.

"Lock your savings away for 12 months and get a guaranteed 4.00% AER/gross interest rate.

Get an extra 0.20% AER/gross on the 1-year term if you have a Lloyds Premier current account, Private Banking Personal Current Account or Private Banking Savings Account that’s been open for at least 8 days."

flaneurs_lobster

Interesting product, surprised that no-one has done this before?

Has anyone worked out what the overall AER is if the interest payment is deposited at (say) 4.5% for the 11 months remaining on the bond?

molerat

https://forums.moneysavingexpert.com/discussion/comment/82169641#Comment_82169641

Not worked it out precisely but is only going to be under 4.2% / 4.4% overall max so not a particularly strong rate as 4.99% + is easily available on a 1 year fix. The only reason for taking this would be to bring the interest into this tax year.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82169641#Comment_82169641

The incremental interest from depositing elsewhere will be 4% * 4.5% * 11/12 = 0.165%, i.e. overall annual return of 4.165%.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82169652#Comment_82169652

Indeed as you say, perhaps the first of other products that seek to reduce the effect of the increased tax on interest payments next year?

Eco_Miser

https://forums.moneysavingexpert.com/discussion/comment/82169595#Comment_82169595

Edit your post and hover over the link. In the pop-up, select the first option 'Text' , result as below.

https://www.lloydsbank.com/savings/upfront-interest-online-fixed-bond.html

EarthBoy

https://forums.moneysavingexpert.com/discussion/comment/82170196#Comment_82170196

Done. Thank you.