Regular Savings Accounts - a question. 31 January 2008 at 10:11AM edited 30 November -1 at 1:00AM in Savings & Investments 3 replies 702 views

sircolin

Many I have seen advertised will only allow you to invest in them as long as you also open a regular account – which usually pays an atrocious interest rate. If I open an account with just a pound, and do nothing else with it, then open a regular saver - will the bank get the hump and tell me to !!!!!! off? I’ve heard that Lloyds TSB will move cash from their regular saver, to their Tracker Account if you don’t use the current account.

Any advice would be greatly appreciated.

sircolin

Paul_Herring

sircolin wrote: »

Many I have seen advertised will only allow you to invest in them

You 'invest' in stocks and shares - you 'save' in a savings account. The distinction can be important when asking questions on here.

as long as you also open a regular account – which usually pays an atrocious interest rate.

I think you'll find that where this occurs, the restriction is worse. You are usually required to have your salary/pension/set amount paid in each month.

If I open an account with just a pound, and do nothing else with it, then open a regular saver - will the bank get the hump and tell me to !!!!!! off? I’ve heard that Lloyds TSB will move cash from their regular saver, to their Tracker Account if you don’t use the current account.

However LTSB don't have the regular funding requirement:

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Martin wrote:

However, a word of warning: to operate this account, you must have a Lloyds current account. Lloyds says that its Classic (not Classic Plus) account can be opened with just £1, and requires no further money paid into it, so shouldn’t be a problem. MoneySavers have been told by its customer services that they must pay their salary in, meaning it’s not worth it. The powers-that-be at Lloyds deny this, but it’s a hassle nonetheless.

knights

sircolin wrote: »

Many I have seen advertised will only allow you to invest in them as long as you also open a regular account – which usually pays an atrocious interest rate. If I open an account with just a pound, and then and do nothing else with it, then open a regular saver etc... sircolin

Hi, there are various conditions attached to various regular savers, it depends which one (or ones) you are looking at.

There is a thread containing regular saver advice on this site where a lot of questions are answered.

Of course most of them want you to take your banking to them, the high interest regular savers offered are there to attract you.

In reality, and just to cover Paul_Herring point and I qoute 'You are usually required to have your salary/pension/set amount paid in each month'. You can usually get over this by saying you do not receive regular monthly salary payments but receive 'consultion' cheques as and when, they will then (usually) tell you what the minimum amout is that you would have to pay in. HSBC for example told me £500 pm.

Whatever happens most people that take out regular savers will keep a positive balance of £1.00 in the account, put the minimum amount in each month that you can get away with and immediately transfer out surplus money back into a better interest account.

regards

Special_Saver2

According to the terms and conditions:

You must be 16 or over; and have your main current account with Lloyds TSB. Your main current account is the current account you use most often for your everyday banking. If you don’t use your LTSB current account as your main current account we can convert your Monthly Saver to a Guaranteed Tracker (or similar account if that account is no longer available)

Quoted from this page on the Lloyds TSB website.

I cannot remember ever reading any reports from moneysavers on this forum having had that condition imposed against them though but those are the terms and conditions.

You might want to check out my thread on regular savers (Regular Savings Accounts: The Best Currently Available List!). The introduction includes some links to other threads that answer frequently asked questions.