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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 4
    • Herbalus
    • By Herbalus 16th Apr 18, 9:47 PM
    • 2,106 Posts
    • 1,741 Thanks
    Herbalus
    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.
    Originally posted by ceredigion
    Its pleasant to see some original thinking and movement against the current. Though I would be tempted to tweak your idea to secure the new accounts now but leave the majority of funds with BOS/LBG whilst the 2% lasts, its refreshing to see some difference in thought.

    There is sometimes too much tendency for everybody to find a deal on here and pile into it, to the detriment of the product itself, and also the loss of satisfaction of finding some good deal for yourself.
    • hoc
    • By hoc 17th Apr 18, 2:02 AM
    • 264 Posts
    • 151 Thanks
    hoc
    So letters within the next 2 weeks then. So much for Carney's expectations banks would pass on the rate hike.

    I need to keep my Lloyds account but will reduce the balance down. BOS was going to be a struggle with having to find 6 new DDs, at these rates I can't be bothered and will switch them away. I imagine BOS will take a much greater hit than Lloyds.
    • thor
    • By thor 17th Apr 18, 3:51 AM
    • 5,264 Posts
    • 1,886 Thanks
    thor
    I think this will start a race to the bottom in relation to the rates being offered.
    Originally posted by ceredigion
    It's hardly the start as it has been going on for years now. It's the government's fault for giving them so much almost free credit so that they don't need our money anymore. If it wasn't for this 'funding for lending' then the much maligned suggestion of targeting a mass cash withdrawal from a single bank would probably have given them the willies to think of the savers for once instead of bigger profits and undeserved bonuses.
    • thor
    • By thor 17th Apr 18, 3:53 AM
    • 5,264 Posts
    • 1,886 Thanks
    thor

    With interest rates going up, Lloyds' reductions seem perverse.
    Originally posted by ffacoffipawb
    I think you'll find that matching the boe's rate rises only applies to loan and mortgage rates. They got to keep increasing their margins.
    • vixen1500
    • By vixen1500 17th Apr 18, 9:36 AM
    • 493 Posts
    • 1,050 Thanks
    vixen1500
    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
    Yes, that's exactly what I was thinking

    PLUS frees up DDs to cover 2 Co-op and 2 Barclays and 3 Halifax


    Shame they didn't say earlier, back to rearranging DDs - what fun
    Last edited by vixen1500; 17-04-2018 at 9:58 AM.
    2015 and ready for fun
    'You'll never know if you can - unless you try'
    • vixen1500
    • By vixen1500 17th Apr 18, 9:45 AM
    • 493 Posts
    • 1,050 Thanks
    vixen1500
    I'll have to dust off my standing order to my NatWest Savings Builder. Although it only needs 50pm now
    Originally posted by surreysaver
    We have 2 single accounts, might be worth getting a joint one aswell
    Last edited by vixen1500; 17-04-2018 at 9:49 AM.
    2015 and ready for fun
    'You'll never know if you can - unless you try'
    • bxboards
    • By bxboards 18th Apr 18, 6:50 AM
    • 1,562 Posts
    • 1,231 Thanks
    bxboards
    I'm going to close mine - when it was offering 4% just over a year ago it was worth it, but with the drop to 2% and now 1.5% I am going to close it - this is also coupled with the branch closure announcements - my local branch is being closed. While I could use the local post office if not in a hurry, it's easily possible to spend 20 minutes queuing there behind folks sending multiple parcels, or applying for licences etc, something I'm not prepared to do.
    • anotheruser
    • By anotheruser 18th Apr 18, 11:16 AM
    • 2,626 Posts
    • 1,548 Thanks
    anotheruser
    Hmm.
    Was about to open a new one from Santander so possibly isn't worth it anymore. That's a shame.

    I guess there's always Barclays Blue account...
    • supremetwo
    • By supremetwo 18th Apr 18, 12:55 PM
    • 24 Posts
    • 14 Thanks
    supremetwo
    IS MSE to blame?
    The issue with all these offers perhaps lies in the MSE instructions re. automation from one account to another.

    When so many are doing this, the banks will not be making the profit on these accounts that they have predicted.

    The same can be said for best buy tables.

    As soon as a provider puts its head above the parapet, it will be inundated. Ulster bank is a recent example.
    • Richchad
    • By Richchad 18th Apr 18, 1:49 PM
    • 393 Posts
    • 61 Thanks
    Richchad
    Bank of England saying interest rates could rise next month...

    So these greedy banks all of a sudden drop their rates in time to raise them when BOE rate increases saying look we have increased the rate in line with BOE rate rise

    This rate drop just confirms my earlier decision to close our 10 BOS accounts and 2 of our Lloyds accounts and invest elsewhere.
    • eskbanker
    • By eskbanker 18th Apr 18, 1:54 PM
    • 8,009 Posts
    • 8,925 Thanks
    eskbanker
    Bank of England saying interest rates could rise next month...

    So these greedy banks all of a sudden drop their rates in time to raise them when BOE rate increases saying look we have increased the rate in line with BOE rate rise

    This rate drop just confirms my earlier decision to close our 10 BOS accounts and 2 of our Lloyds accounts and invest elsewhere.
    Originally posted by Richchad
    So you had at least twelve accounts with the same banking group, presumably to exploit the opportunity to maximise interest earnings, but it's the banks that are greedy?!
    • Richchad
    • By Richchad 18th Apr 18, 2:15 PM
    • 393 Posts
    • 61 Thanks
    Richchad
    So you had at least twelve accounts with the same banking group, presumably to exploit the opportunity to maximise interest earnings, but it's the banks that are greedy?!
    Originally posted by eskbanker
    You have to play their game..

    I sort of knew someone would make a comment like that.
    • Heng Leng
    • By Heng Leng 18th Apr 18, 3:12 PM
    • 4,608 Posts
    • 1,461 Thanks
    Heng Leng
    The issue with all these offers perhaps lies in the MSE instructions re. automation from one account to another.

    When so many are doing this, the banks will not be making the profit on these accounts that they have predicted.

    The same can be said for best buy tables.

    As soon as a provider puts its head above the parapet, it will be inundated. Ulster bank is a recent example.
    Originally posted by supremetwo
    Highlighting loopholes on MSE does have tendency to result in them closing.

    I used to buy nuts, seeds and dried fruit more cheaply in the baking section (of the major supermarkets) rather than the healthy eating/ snack sections.

    Once highlighted in MSE all the big supermarkets raised their prices to the point that there is virtually no price difference.

    Make of that what you will
    • EachPenny
    • By EachPenny 18th Apr 18, 3:46 PM
    • 6,673 Posts
    • 17,891 Thanks
    EachPenny
    Make of that what you will
    Originally posted by Heng Leng
    It is nuts.
    "In the future, everyone will be rich for 15 minutes"
    • MarkFromCornwall
    • By MarkFromCornwall 18th Apr 18, 5:46 PM
    • 771 Posts
    • 497 Thanks
    MarkFromCornwall
    So these greedy banks ...
    Originally posted by Richchad
    If you believe that the banks are greedy why not invest in some bank shares so that you are on the receiving end?
    • Richchad
    • By Richchad 18th Apr 18, 6:36 PM
    • 393 Posts
    • 61 Thanks
    Richchad
    So you had at least twelve accounts with the same banking group, presumably to exploit the opportunity to maximise interest earnings, but it's the banks that are greedy?!
    Originally posted by eskbanker
    I am not sure why some are thinking I am greedy, as I did mentioned our accounts, these were all opened within the rules at the time.

    So not greedy just smart really, while it lasted.
    • eskbanker
    • By eskbanker 18th Apr 18, 6:53 PM
    • 8,009 Posts
    • 8,925 Thanks
    eskbanker
    I am not sure why some are thinking I am greedy, as I did mentioned our accounts, these were all opened within the rules at the time.

    So not greedy just smart really, while it lasted.
    Originally posted by Richchad
    My post was intended as mildly tongue-in-cheek rather than critical - obviously many on here go for multiple current accounts where permitted by the Ts & Cs, but equally those who play that game are typically less likely to subscribe to the lazy stereotypical tabloid narrative of banks being greedy, so it could be argued that there's a whiff of hypocrisy here, although that's probably too strong a term really.

    However, if you're defending your actions as not being greedy on the basis of being within the rules, are you therefore contending that rate cuts by banks aren't being carried out within the rules?
    • Richchad
    • By Richchad 18th Apr 18, 9:07 PM
    • 393 Posts
    • 61 Thanks
    Richchad
    However, if you're defending your actions as not being greedy on the basis of being within the rules, are you therefore contending that rate cuts by banks aren't being carried out within the rules?
    Originally posted by eskbanker
    My point was that it seems the banks drop their rates prior to a possible increase in the BOE rates just to raise them again and look like they are doing the right thing following the BOE rate increase.
    • ValiantSon
    • By ValiantSon 18th Apr 18, 9:20 PM
    • 2,537 Posts
    • 2,511 Thanks
    ValiantSon
    My point was that it seems the banks drop their rates prior to a possible increase in the BOE rates just to raise them again and look like they are doing the right thing following the BOE rate increase.
    Originally posted by Richchad
    Accepting your premise for the moment (which I don't really), why is this wrong, given that it is "within the rules" and that was your justification for opening so may accounts with the same bank to maximise your gain?

    Why do you think the banks should increase their interest rates in line with the base rate? There is not a direct relationship between the two. The banks set rates as a business decision wherein they try to balance attracting depositors, while ensuring that they make a profit (as is their fiduciary duty to shareholders). The Bank of England sets the base rate as a mechanism for controlling inflation. While the base rate may affect what banks can afford to offer there is not a direct relationship.
    • Bluefire
    • By Bluefire 19th Apr 18, 6:48 AM
    • 470 Posts
    • 2,977 Thanks
    Bluefire
    Taking this as a sign that we should spend a big chunk of our savings on house renovations this year after all. It was only the other day I was considering holding off for another year due to the interest. Conservatory here we come!
    Mortgage: 08/13 28,896.49 01/18 0

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