Interesting new current account launching soon from Lloyds with additional benefits. Won't be for everyone (for many people TSB Plus will be better instead) but for people chasing rates, this will be another good one to get.
4% interest (tiered) up to £5,000
1% on £1-£1,999
2% on £2,000-£3,999
4% on £4,000-£5,000
0.2% discount on mortgage rate.
Access to a 4% regular saver.
Also included is one of three benefits each year;
- 6 Vue cinema tickets
- Annual Gourmet Society membership
- Annual magazine subscription (digital [iPad only] or printed)
You may change at around the anniversary of your account opening each year.
Once opened change your benefit within 30 days of account opening at https://www.clublloyds.com/ (currently 404 while they prepare for launch)
Hoops:
- Requires two direct debits paid out monthly to gain interest
- Requires £1,500 paid in to account each month otherwise £5/mo charge (don't forget that this is in total, so £500 sent backwards and forwards three times between this account over a matter of minutes will suffice; or £1 sent back and forwards 1,500 times).
That's not usually how tiered interest works. Usually it means that if there's between £4000-£5000 in the account, you'll get 4% (or 3.2% after tax) on the whole lot.
All comments (82)
Jonnyblock
28 Mar 14#1
Hot but santander 123 is probably better overall.
BustaLinx to Jonnyblock
28 Mar 141#3
Depends on how much you have in your account, but this is the better of the two accounts in pure interest terms up to just over £6,500. For larger amounts or cashback on direct debits it gets more complex, but there's no reason why you can't hold several different current accounts to make the most of each of them.
Allowing for 20% tax you're still looking at needing an ISA with a rate greater than 3.2% to beat this. Even the 5 year fixes don't offer that. And you'd be hard-pressed to find many ISAs beating even 2.4% (the 40% tax rate equivalent), though some people remain optimistic to see what the NISA rates will be.
deets
28 Mar 14#2
not tax free so compare to your isa etc etc etc
pantaiema to deets
29 Mar 14#16
At the moment there is not any ISA which pays 3.2% interest in the market
rowly73
28 Mar 14#4
Lloyd's and they are a bunch of cee you next tuesdays
oddballjamie
28 Mar 142#5
I have an old vantage account that gives me 4% interest without any conditions or charges if you don't pay your monthly income into it.
Everytime I'm in the branch they try to get me to change accounts to a newer one. No thanks Lloyds.
dankuvermach to oddballjamie
29 Mar 141#10
Just like our ISP
We have a 1 month contract, they keep trying to manipulate us into an 18 month contract, claiming it will be 'cheaper' or that our router is 'broken'
Keep it up
kar999 to oddballjamie
29 Mar 14#11
I thought the 4% vantage offer only lasted a year and went back to 3% last October. It did on mine.
chefjeegar to oddballjamie
29 Mar 14#30
I opened 3 ac's last year and int. is 3% how do i make it go to 4%? Am still able to switch to this 4%
mutley1
28 Mar 14#6
sounds good, may look into it as i have a halifax reward current account that i could ditch.
deets
28 Mar 14#7
nope just pointing it out, especially for 40% folk :smiley:
dmiller280867
28 Mar 14#8
Heard the Vantage is going soon so Club Lloyds will be better. Also will get discount on mortgage rate.
kar999
29 Mar 14#9
Vantage rates will be cut from 3% to 1.5% from July so I'll need to do something with mine and the missus' 7 accounts!
chocci
29 Mar 14#12
actual interest rate on £5000 = 2.4%
BustaLinx
29 Mar 14#13
How've you calculated this and ended up at a wrong number?
Apparantly mortgage discount is only is you move mortgage not existing c&g mortgage customer.
unreality
29 Mar 14#17
Don't suppose anyone knows of any calculators online to play with to see if I'm better off with an ISA or current account?
novadragon849
29 Mar 14#18
Is it only one of these account per customer?
Mark43
29 Mar 14#19
Looks okay but 'Club Lloyds'? Seriously, they need to fire their marketing department.
lugsy3
29 Mar 14#20
Excellent thanks, already with Lloyds for about 30 years so will switch to this one on Monday.:smiley:
chocci
29 Mar 14#21
this is 2.4%
deets
29 Mar 14#22
there are other rates of tax.
PhoenixRising
29 Mar 143#23
That's not usually how tiered interest works. Usually it means that if there's between £4000-£5000 in the account, you'll get 4% (or 3.2% after tax) on the whole lot.
could be handy for those of us who like to keep 6 months mortgage in savings for emergencies, but for some it might make more sense to not save so much and pay off the mortgage.
im always wary of financial topics on here as it all depends on your personal setup.
From what I've read phoenix rising is right that if you have 5k in there you get 4% on all of the 5k. However when people use the term tiered it would make me think that the interest earned is based on the % rate given for each tier ie you would only get 4% on any balance over 4k up to 5k.
CheapLife
29 Mar 142#29
tsb is launching a 5% current account tomorrow (up to £2000) so I'm guessing that's why Lloyd's is doing this. you can have several tsb accts per person to mamimise the interest.
5% taxed beats almost every isa on the market even for higher rate tax payers. I still use my isa allowance so I can transfer when good deals open up, even though you'd make more keeping money in the tsb at 5% in the short term.
leeparsons
29 Mar 14#31
Nice, thats upto £200 quid in interest a year
pantaiema
29 Mar 14#32
I am fully aware about that. Even 40% tax rate you will end up with 2.4%. There are only one ISA that I know pay this rate e.g Leeds building society but it is already close for new application. also they do not allow transfer in ...
Make this one will beat ISA saving ....
pantaiema
29 Mar 14#33
The classic account is now 3% not 4% ...
oddballjamie
29 Mar 14#34
It was dropped to 3% a couple of years ago. When it was first launched it was 4%, I jumped on it back then and refuse to swap, although the cinema tickets are tempting.
deets
29 Mar 14#35
Your issue with me suggesting people check is what? Alas misinformation has been given about the true final saving rate as people forget about different tax bands and this is only has the 4% before tax if you have more than the 4k.
Always wise to suggest people look into all the details rather than go off a hot rating on here.
merlie
29 Mar 14#36
So ditch the isa's and plot into 123, tsb, and now lloyds accounts?
r40
29 Mar 14#37
also don't forget the free gift too:
6 Vue cinema tickets
- Annual Gourmet Society membership
- Annual magazine subscription (digital [iPad only] or printed)
rickyc88
29 Mar 14#38
Does anyone know when you get the free gift?
Mister_E
29 Mar 14#39
What is the point, they are screwing us, do the right thing and take your money out of all banks, watch how fast the i terest rate rises for savers then!
Mark43 to Mister_E
29 Mar 141#40
Yeah, but I can't help but feel its just that little bit safer in the bank rather than under my mattress.
applied now so let's see if i get accepted. :innocent:
troy39l
31 Mar 14#46
Successfully upgraded a vantage account to the club account. Very painless, just took a few minutes online.
lugsy3
31 Mar 14#47
All done to upgrade from classic account, great deal thanks op for making me aware of this.:smiley:
chrisstamp
31 Mar 14#48
When it says you have to pay in £1500 a month to get the fee waived , can you pay in from others accounts and take the money back out.
BustaLinx
31 Mar 14#49
Yes, and doesn't have to all be in one go.
kar999
31 Mar 14#50
If you're a rate tart pay it in and take it straight out on the same day via standing order.:smirk:
emptypocketz
31 Mar 14#51
if I open a Lloyds (club) account and put 5k savings and get 4% interest does this mean I get roughly £200 interest per year ?
I take it with tax about £160-170 each year...
kar999
31 Mar 141#52
Yes ... plus the "benefits" in the OP.
ukscoob1
31 Mar 14#53
Most ISA's have crap rates. Santander 123 3% is better than nearly all ISA's atm that I've seen. Wait for the new ISA's = NISA. Should have good introductory rates. Coming in July.
ukscoob1
31 Mar 14#54
Opened. Paid in £5k. Setting up standing order when I get my online banking login details. Thanks OP!
emptypocketz
31 Mar 14#55
Thanks I take it one person can only open one account though ?
Say 5K one account per person
kar999
31 Mar 14#56
Yep one per person plus a joint one (which has to be opened in branch) so you can invest £15k as a couple @ 4% gross with instant access so beats most ISA's at the moment unless you go for a fix which probably isn't a good move with potential rate rises looming.
You can fund all three with a rotating single monthly £1500 standing order so long as you can set up 2 DD's in each. Consider £1 direct debits to savings accounts that allow DD's like Tesco or to a Paypal account or the National Lottery.
emptypocketz
31 Mar 14#57
thanks good to know but is there any accounts where you can open mulitple accounts ?
I hear some have done so on santander 123 accounts and opened 4 x accounts
kar999
31 Mar 14#58
I have 7 vantage accounts but their days are numbered!
simes
1 Apr 14#59
If you go over £5000 do you get no interest on any of the amount ?
The wording on their website does not make it clear.
Please do not answer if you don't definitely know . I would expect them to pay 4% on the £5000 , then nothing on the amount over this. But their website does not clearly state that
kar999
1 Apr 14#60
.
There is no additional interest on balances over £5k but you do get the interest on the £5k.
Zugzwang
3 Apr 14#61
Chocci
Surely the 3% should be 2% giving a final average 2%!
Transformers
5 Apr 14#62
Has anyone tried this (the bit in bold I mean)?
Will it definitely work 100%??? Thanks. :smiley:
chefjeegar
5 Apr 141#63
Moving money from one account to another works. Can confirm as I have been doing so in Lloyds and Halifax for past one year now. Best is to setup standing order.
Basically does the monthly £500 have to be paid in from another non-TSB account into each TSB account. Or can I leave it to loop???
So I deposit one £500 amount into the first TSB account, and then by standing order it goes to the next TSB account, and then just keeps looping between the two. :smiley:
chefjeegar
5 Apr 14#65
Looks like you getting the hang of it. Kudos
Firefly1
8 Apr 14#66
Providing the account has 2 direct debits, do they still need to pay out each month?
i.e. Can I use a PayPal direct debit; even if I don't buy anything during the month via PayPal ??
lumsdot
8 Apr 14#67
So not 4 perc just an average of 1 2 and 4 perc
They must think we are mugs, stay clear of these sucker deals,
Santander give a proper 3 perc on balances upto 20k
If you go into lloyds tell them you are not happy they are flashing 4 perc about when its only 4 perc on a fraction of your savings
Newbold
8 Apr 14#68
Not sure that that's right, given this:
Earn variable tiered credit interest on balances between £1 and £5,000 when you pay at least 2 different direct debits from your Club Lloyds current account each calendar month.
Club Lloyds interest rates are variable and apply to your whole balance.
For example, if you have £4,000 in your account for one year, you'll receive an interest rate of 4% AER/3.93% Gross variable on your entire balance, provided you pay two different Direct Debits from your Club Lloyds current account each calendar month.
Interest is calculated daily, and paid monthly but will not be paid in any month you do not have two different direct debits paid from your account, or on amounts over £5,000.
Not at all clear, though.
Newbold
8 Apr 14#69
Why not ask Lloyds Bank? :neutral_face:
lumsdot
8 Apr 14#70
I take it back, looks like the interest rate applies to your whole balance upto 5000.
But still hate them for limiting it to 5k, plus after a year bet it will revert to .01 perc
Firefly1
8 Apr 14#71
Because there are helpful and knowledgable people on HUKD as opposed to waiting in a queue on the phone :wink:
Newbold
8 Apr 14#72
Helpful, yes. Knowledgeable, not necessarily. Ask the people who know the answers rather than guess at them. I got through to someone in 2 minutes or less.
Firefly1
8 Apr 14#73
Helpful, yes. Knowledgeable, yes. Perhaps you don't know the answer but thank you for your bump. Thanks for your advice though but I will see if any fellow HUKDers know the answer first.
Equally, if we were all to phone Lloyds and avoid asking & answering questions ourselves, other people on HUKD wouldn't find out either.
Newbold
9 Apr 14#74
I think I can now give you an answer, having just been loking at the account leaflet (though not the T&C):
"Variable tiered credit interest paid on balances from £1 up to £5,000, when you pay at least two different direct debits from your account each calendar month."
The word 'pay' is used, so I'm guessing the answer to your question is 'no'. I could be wrong, though. :wink:
kar999
9 Apr 14#75
From bitter experience with Lloyds (and other institutions), unless you ask the right person the right question you wont necessarily get the right answer.
ukscoob1
9 Apr 14#76
Agree. I deliberately chose DD's that I actually pay monthly. Of other current accounts that state DD requirements some say 'pay' and some say 'have' [setup].
MrZjman
8 May 14#77
Stupid Question.
This won't be tax free right? So it wouldn't make sense to transfer over my ISA balance to be taxed, just to gain the regular interest?
Thanks for the help in advance!
Newbold
8 May 14#78
Not tax-free, unlike your ISA. Whether it's worth transferring the ISA balance depends on whether the Lloyds 4% is worth more after tax than the rate you're getting from your ISA. You may find that it is.
MrZjman
13 May 14#79
Well i only get interest once a year on my ISA so it would almost definitely be more.
money monster
8 Oct 14#80
Resurrecting this one. Has anyone had success with direct debits being to a club llyods saving account, or paypal account. I don't have 2 bills to pay so just need to bounce a few quid around.
TirolForce165
6 Oct 16#81
Its a late answer I know but you can set up a paypal Direct debit but must do them manually each month .
I have a question if anyone can help.
Can the £1500 credit into the 4% club account come from my Lloyds online savings account then returned instantly to the club account, all done online ?
TirolForce165
6 Oct 16#82
I just go into paypal now my club account is setup in paypal and initiatethe paypal DD doing only £1 each month .
Just need to know the exact work around on crediting the £1500 each month into the club account .
Can the £1500 come from my club Lloyds then transfered too my internal Lloyds savings account then transferred back to club Lloyds in minutes ??
With Tsb classic plus accounts £500 credit and Halifax reward accounts £750 credit this works internally .
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Opening post
4% interest (tiered) up to £5,000
1% on £1-£1,999
2% on £2,000-£3,999
4% on £4,000-£5,000
0.2% discount on mortgage rate.
Access to a 4% regular saver.
Also included is one of three benefits each year;
- 6 Vue cinema tickets
- Annual Gourmet Society membership
- Annual magazine subscription (digital [iPad only] or printed)
You may change at around the anniversary of your account opening each year.
The account will be available from http://www.lloydsbank.com/club-lloyds (when it launches) or in branches.
Once opened change your benefit within 30 days of account opening at https://www.clublloyds.com/ (currently 404 while they prepare for launch)
Hoops:
- Requires two direct debits paid out monthly to gain interest
- Requires £1,500 paid in to account each month otherwise £5/mo charge (don't forget that this is in total, so £500 sent backwards and forwards three times between this account over a matter of minutes will suffice; or £1 sent back and forwards 1,500 times).
Further info TBA
Top comments
https://apply.lloydsbank.co.uk/personal/a/apply_current_account/clubaccountLTB
All comments (82)
Allowing for 20% tax you're still looking at needing an ISA with a rate greater than 3.2% to beat this. Even the 5 year fixes don't offer that. And you'd be hard-pressed to find many ISAs beating even 2.4% (the 40% tax rate equivalent), though some people remain optimistic to see what the NISA rates will be.
Everytime I'm in the branch they try to get me to change accounts to a newer one. No thanks Lloyds.
We have a 1 month contract, they keep trying to manipulate us into an 18 month contract, claiming it will be 'cheaper' or that our router is 'broken'
Keep it up
[email protected]%=60
[email protected]%=20
120/5000*100=2.4%
closer than your 3.2% :wink:
http://www.thisismoney.co.uk/money/saving/article-1633425/Calculator-Savings-rates-converter--tax-pay-savings.html
could be handy for those of us who like to keep 6 months mortgage in savings for emergencies, but for some it might make more sense to not save so much and pay off the mortgage.
im always wary of financial topics on here as it all depends on your personal setup.
http://www.hotukdeals.com/deals/current-account-4-interest-up-3000-fixed-until-march-2015-clydesdale-bank-1858686
5% taxed beats almost every isa on the market even for higher rate tax payers. I still use my isa allowance so I can transfer when good deals open up, even though you'd make more keeping money in the tsb at 5% in the short term.
Make this one will beat ISA saving ....
Always wise to suggest people look into all the details rather than go off a hot rating on here.
6 Vue cinema tickets
- Annual Gourmet Society membership
- Annual magazine subscription (digital [iPad only] or printed)
https://apply.lloydsbank.co.uk/personal/a/apply_current_account/clubaccountLTB
I take it with tax about £160-170 each year...
Say 5K one account per person
You can fund all three with a rotating single monthly £1500 standing order so long as you can set up 2 DD's in each. Consider £1 direct debits to savings accounts that allow DD's like Tesco or to a Paypal account or the National Lottery.
I hear some have done so on santander 123 accounts and opened 4 x accounts
The wording on their website does not make it clear.
Please do not answer if you don't definitely know . I would expect them to pay 4% on the £5000 , then nothing on the amount over this. But their website does not clearly state that
There is no additional interest on balances over £5k but you do get the interest on the £5k.
Surely the 3% should be 2% giving a final average 2%!
Will it definitely work 100%??? Thanks. :smiley:
Another question (anyone can answer), in regards to me having 2x TSB Current Plus accounts instead.
Basically does the monthly £500 have to be paid in from another non-TSB account into each TSB account. Or can I leave it to loop???
So I deposit one £500 amount into the first TSB account, and then by standing order it goes to the next TSB account, and then just keeps looping between the two. :smiley:
i.e. Can I use a PayPal direct debit; even if I don't buy anything during the month via PayPal ??
They must think we are mugs, stay clear of these sucker deals,
Santander give a proper 3 perc on balances upto 20k
If you go into lloyds tell them you are not happy they are flashing 4 perc about when its only 4 perc on a fraction of your savings
Earn variable tiered credit interest on balances between £1 and £5,000 when you pay at least 2 different direct debits from your Club Lloyds current account each calendar month.
Club Lloyds interest rates are variable and apply to your whole balance.
For example, if you have £4,000 in your account for one year, you'll receive an interest rate of 4% AER/3.93% Gross variable on your entire balance, provided you pay two different Direct Debits from your Club Lloyds current account each calendar month.
Interest is calculated daily, and paid monthly but will not be paid in any month you do not have two different direct debits paid from your account, or on amounts over £5,000.
Not at all clear, though.
But still hate them for limiting it to 5k, plus after a year bet it will revert to .01 perc
Equally, if we were all to phone Lloyds and avoid asking & answering questions ourselves, other people on HUKD wouldn't find out either.
"Variable tiered credit interest paid on balances from £1 up to £5,000, when you pay at least two different direct debits from your account each calendar month."
The word 'pay' is used, so I'm guessing the answer to your question is 'no'. I could be wrong, though. :wink:
This won't be tax free right? So it wouldn't make sense to transfer over my ISA balance to be taxed, just to gain the regular interest?
Thanks for the help in advance!
I have a question if anyone can help.
Can the £1500 credit into the 4% club account come from my Lloyds online savings account then returned instantly to the club account, all done online ?
Just need to know the exact work around on crediting the £1500 each month into the club account .
Can the £1500 come from my club Lloyds then transfered too my internal Lloyds savings account then transferred back to club Lloyds in minutes ??
With Tsb classic plus accounts £500 credit and Halifax reward accounts £750 credit this works internally .