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  • FIRST POST
    • quinquereme
    • By quinquereme 13th Apr 18, 9:29 PM
    • 2Posts
    • 37Thanks
    quinquereme
    Club Lloyds and BOS dropping rates to 1.5% on 1st July
    • #1
    • 13th Apr 18, 9:29 PM
    Club Lloyds and BOS dropping rates to 1.5% on 1st July 13th Apr 18 at 9:29 PM
    Just noticed this on Lloyds website:
    Please note: From the 1st July 2018, we will be changing the interest you can earn on Club Lloyds current accounts. The current interest rate of 2% AER/1.98% Gross variable, payable on balances between 1 and 5,000, will reduce to 1.5% AER/1.49% Gross variable. You will still need to pay at least two different Direct Debits each calendar month to earn interest.

    Checked BoS and same with Vantage:
    Please note: From the 1st July 2018, we will be changing the interest you can earn on Vantage accounts. The current interest rate of 2% AER/1.98% Gross variable, payable on balances between 1 and 5,000, will reduce to 1.5% AER/1.49% Gross variable. To earn interest, you will still need to pay at least two different Direct Debits each calendar month, pay at least 1,000 into your account during the calendar month, and stay in credit (above 0) during the monthly billing period.

    (Can't post links as a newbie.). Sad times.
Page 3
    • Badger50
    • By Badger50 15th Apr 18, 2:11 PM
    • 53 Posts
    • 19 Thanks
    Badger50
    Seems quite odd that they could sustain their old rates when the Bank Rate was as low as 0.25% and are reducing their rates just when the Bank Rate might well have gone up to 0.75%..
    • Herbalus
    • By Herbalus 15th Apr 18, 2:48 PM
    • 1,992 Posts
    • 1,579 Thanks
    Herbalus
    Seems quite odd that they could sustain their old rates when the Bank Rate was as low as 0.25% and are reducing their rates just when the Bank Rate might well have gone up to 0.75%..
    Originally posted by Badger50
    Current account rates were never particularly closely linked to Bank of England base rate. The fact that you could only deposit so much is a clue that they were short-term perks designed to attract a customer. You only need to look at the market to see a general drop in rates offered by current accounts.

    I think Tesco current account is the only one that hasnt dropped yet in the last few years, and they published that their 3% rate is guaranteed until April 2019 I think. Guess what will happen after that!!
    • ceredigion
    • By ceredigion 15th Apr 18, 4:20 PM
    • 2,660 Posts
    • 3,468 Thanks
    ceredigion
    I spent most of yesterday mulling this over in my head after quinquereme kindly brought it to the forum on Friday night.
    I think this will start a race to the bottom in relation to the rates being offered. on that bases I've already jumped. The money in the 6 BOS accounts is on its way to 2 new Nationwide Loyalty ISA's and instigated a switch in order two close the accounts. The money in two club Lloyds accounts is now in a new Tesco's account at 1.3 % in my wife's name and switch instigated. The third joint account I shall maintain for the regular savers but with a minimal balance. This means we can loose nearly all our DD's cutting the amount of faffing and brings me below the 1000 interest threshold.
    • RG2015
    • By RG2015 15th Apr 18, 4:53 PM
    • 1,126 Posts
    • 675 Thanks
    RG2015
    The money in the 6 BOS accounts is on its way to 2 new Nationwide Loyalty ISA's and instigated a switch in order two close the accounts. The money in two club Lloyds accounts is now in a new Tesco's account at 1.3 % in my wife's name
    Originally posted by ceredigion
    Six BOS and two Club Lloyds sounds like 5k x 8 = 40k.

    Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?

    I am not one of the S&S brigade (quite the opposite but they do have me questioning my decisions) but just trying to find others' reasons for holding large amounts in cash.
    • Zanderman
    • By Zanderman 15th Apr 18, 6:12 PM
    • 1,473 Posts
    • 3,966 Thanks
    Zanderman
    Six BOS and two Club Lloyds sounds like 5k x 8 = 40k.

    Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?

    I am not one of the S&S brigade (quite the opposite but they do have me questioning my decisions) but just trying to find others' reasons for holding large amounts in cash.
    Originally posted by RG2015
    Zanderwoman and I have similar amounts to ceredigion in current/instant access accounts. For us it's a wariness of S&S (though like you they do make me question my logic now and then) but primarily because we plan to move to a more expensive property in the next year or two, so we want easy straightforward access to our cash. Having said that we've had that plan for a a year or two now, so with hindsight could have locked some away - and indeed are starting to do that with more now.

    As for this current situation with BoS and Llloyds lowering the rate from 2% to 1.5% we had already moved some away from BoS and Lloyds because of the Tesco DD situation affecting some of the accounts. Some has gone to 3 year fixed rate accounts. The rest, I don't know yet. NatWest Savings Builder looks less hassle for 1.5% than BoS and Lloyds so if only getting 1.5% we might go there, at least to start with. Already have TSB, Tesco and 123 etc and weary of the faff of regular savers even though they add a lot, particularly if fed from 123.
    • ceredigion
    • By ceredigion 15th Apr 18, 7:22 PM
    • 2,660 Posts
    • 3,468 Thanks
    ceredigion
    Six BOS and two Club Lloyds sounds like 5k x 8 = 40k.

    Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?

    I am not one of the S&S brigade (quite the opposite but they do have me questioning my decisions) but just trying to find others' reasons for holding large amounts in cash.
    Originally posted by RG2015
    As I said in another thread the other day. We do have a investment portfolio and as a percentage of total asset the cash element is sensible . Don't put all your eggs in one basket.
    • ValiantSon
    • By ValiantSon 15th Apr 18, 11:01 PM
    • 1,596 Posts
    • 1,339 Thanks
    ValiantSon
    I spent most of yesterday mulling this over in my head after quinquereme kindly brought it to the forum on Friday night.
    I think this will start a race to the bottom in relation to the rates being offered. on that bases I've already jumped. The money in the 6 BOS accounts is on its way to 2 new Nationwide Loyalty ISA's and instigated a switch in order two close the accounts. The money in two club Lloyds accounts is now in a new Tesco's account at 1.3 % in my wife's name and switch instigated. The third joint account I shall maintain for the regular savers but with a minimal balance. This means we can loose nearly all our DD's cutting the amount of faffing and brings me below the 1000 interest threshold.
    Originally posted by ceredigion
    Why didn't you wait until the rate actually changed? All you have achieved is to reduce the amount of interest you will earn over the next couple of months. The Nationwide Loyalty ISA will pay you 1.4%, rather than 2% and the money in the Tesco accounts will pay you 1.3%, rather than 2%, so you have cost yourself 52.74:

    BOS to Nationwide = 37.98 (BOS = 126.58; Nationwide = 88.60)
    Lloyd's to Tesco = 14.76 (BOS = 42.19; Tesco = 27.43).

    This rather seems like cutting off your nose to spite your face.
    Last edited by ValiantSon; 15-04-2018 at 11:05 PM. Reason: Typo
    • ValiantSon
    • By ValiantSon 15th Apr 18, 11:04 PM
    • 1,596 Posts
    • 1,339 Thanks
    ValiantSon
    As for this current situation with BoS and Llloyds lowering the rate from 2% to 1.5% we had already moved some away from BoS and Lloyds because of the Tesco DD situation affecting some of the accounts. Some has gone to 3 year fixed rate accounts. The rest, I don't know yet. NatWest Savings Builder looks less hassle for 1.5% than BoS and Lloyds so if only getting 1.5% we might go there, at least to start with. Already have TSB, Tesco and 123 etc and weary of the faff of regular savers even though they add a lot, particularly if fed from 123.
    Originally posted by Zanderman
    Regular savers aren't much of a faff. You set up a standing order and it runs itself.
    • Ben8282
    • By Ben8282 16th Apr 18, 1:43 AM
    • 2,217 Posts
    • 978 Thanks
    Ben8282
    It's a shame they are dropping the interest rates again. Will probably loose them some customers.
    I was also reading about the changes to the benefits of the Platinum account and the increase in the monthly fee. Only the Platinum account is mentioned. I hold a premier account. Will my 25 fee also increase? Will the changes to the benefits of the Platinum account so extensively detailed in the guide to charges also apply to premier accounts? They are not mentioned at all.
    • Vortigern
    • By Vortigern 16th Apr 18, 9:14 AM
    • 2,392 Posts
    • 1,602 Thanks
    Vortigern
    Six BOS and two Club Lloyds sounds like 5k x 8 = 40k.

    Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?

    I am not one of the S&S brigade...
    Originally posted by RG2015
    What would you do if you had 40k spare cash? You don't like S&S; I don't like fixed term accounts paying little more than instant access when rates might rise soon.
    • r2015
    • By r2015 16th Apr 18, 12:28 PM
    • 978 Posts
    • 273 Thanks
    r2015
    At least now I won't have to make sure my Vantage account doesn't drop below 5000 when I transfer the excess to my Santander 123 account.


    Now I can transfer all my pension on Monday and not bother about putting the 5 and 34 DDs that come out 2 days later, back.
    Heading towards 72 and getting even more forgetful and confused and tending to ramble even more.
    If you think I've asked this before I probably have.
    • s88
    • By s88 16th Apr 18, 3:53 PM
    • 20 Posts
    • 6 Thanks
    s88
    This is rather annoying. After a few months failed experimenting with Netflix and Spotify subscriptions in order to enable interest payment, I come here to get information on DD's and find this golden nugget of info, d'oh!
    • ceredigion
    • By ceredigion 16th Apr 18, 5:40 PM
    • 2,660 Posts
    • 3,468 Thanks
    ceredigion
    Why didn't you wait until the rate actually changed? All you have achieved is to reduce the amount of interest you will earn over the next couple of months. The Nationwide Loyalty ISA will pay you 1.4%, rather than 2% and the money in the Tesco accounts will pay you 1.3%, rather than 2%, so you have cost yourself 52.74:

    BOS to Nationwide = 37.98 (BOS = 126.58; Nationwide = 88.60)
    Lloyd's to Tesco = 14.76 (BOS = 42.19; Tesco = 27.43).

    This rather seems like cutting off your nose to spite your face.
    Originally posted by ValiantSon
    Why now. We will wait and see in the fullness of time but I think when this rate cut filters through to LBG customers, there will be many 5,10 and 15K parcels of money looking for a new home. Sure some will stay put, but when you include the DD requirements and customers see easy accounts at 0.1% less the influx of new money will force a rate drop. I am gambling on new issues being considered as apposed to cutting the rate for existing customers.
    • Gordon the Moron
    • By Gordon the Moron 16th Apr 18, 5:56 PM
    • 1,416 Posts
    • 719 Thanks
    Gordon the Moron
    I'll be moving the 15K from my BOS accounts into the Nationwide Loyalty ISA @ 1.4%. May be also the Club Lloyds.
    Originally posted by colsten
    I'm going to bin the BOS accounts for the same Nationwide account for simplicity, I will keep Club Lloyds though just to give me 5000 to access as and when I need it with no withdrawal restrictions, you might want to think about doing that as if you put all your spare cash in the Nationwide single access account you can only access it once a year or lose the attractive rate!
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
    • Nicholas
    • By Nicholas 16th Apr 18, 5:59 PM
    • 482 Posts
    • 82 Thanks
    Nicholas
    and access to the 3pc Club Lloyd's RS on 400 pcm.
    Originally posted by Hattie625
    I take it the 2 Direct Debit requirement only applies to the current account in order to get any interest? I would still get interest on the regular saver without the DD's?
    Last edited by Nicholas; 16-04-2018 at 6:12 PM.
    • Gers
    • By Gers 16th Apr 18, 6:01 PM
    • 6,301 Posts
    • 39,596 Thanks
    Gers
    I'm going to take my 15K and put it towards a new car!
    • eschaton
    • By eschaton 16th Apr 18, 6:08 PM
    • 1,721 Posts
    • 1,465 Thanks
    eschaton
    I'm going to take my 15K and put it towards a new car!
    Originally posted by Gers

    You could give it to Dave King to invest
    • ceredigion
    • By ceredigion 16th Apr 18, 6:08 PM
    • 2,660 Posts
    • 3,468 Thanks
    ceredigion
    I take it the 2 Direct Debit requirement only applies to the current account in order to get any interest? I would still get interest on the regular saver without the DD's?
    Originally posted by Nicholas
    That is how I read it. You still need to fund by 1500 per month to avoid the fee though.
    • Gers
    • By Gers 16th Apr 18, 8:47 PM
    • 6,301 Posts
    • 39,596 Thanks
    Gers
    You could give it to Dave King to invest
    Originally posted by eschaton
    The weatherman?
    • eschaton
    • By eschaton 16th Apr 18, 9:41 PM
    • 1,721 Posts
    • 1,465 Thanks
    eschaton
    The weatherman?
    Originally posted by Gers
    That's the one
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