New Lloyds Current Account (Club Lloyds) launching 31 March; 4% AER (Tiered) on up to £5000; access to 4% Regular Saver; 0.2% discount on mortgage; plus additional choice of benefit
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New Lloyds Current Account (Club Lloyds) launching 31 March; 4% AER (Tiered) on up to £5000; access to 4% Regular Saver; 0.2% discount on mortgage; plus additional choice of benefit

88
Found 28th Mar 2014
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.

The account will be available from lloydsbank.com/clu…yds (when it launches) or in branches.

Once opened change your benefit within 30 days of account opening at 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

88 Comments

Hot but santander 123 is probably better overall.

not tax free so compare to your isa etc etc etc

Original Poster

Jonnyblock

Hot but santander 123 is probably better overall.


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.

deets

not tax free so compare to your isa etc etc etc


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.


Edited by: "BustaLinx" 28th Mar 2014

Lloyd's and they are a bunch of cee you next tuesdays

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.

sounds good, may look into it as i have a halifax reward current account that i could ditch.

Jonnyblock

Hot but santander 123 is probably better overall.

deets

not tax free so compare to your isa etc etc etc



nope just pointing it out, especially for 40% folk

Heard the Vantage is going soon so Club Lloyds will be better. Also will get discount on mortgage rate.

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!

oddballjamie

I have an old vantage account that gives me 4% interest without any … 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.



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

oddballjamie

I have an old vantage account that gives me 4% interest without any … 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.



I thought the 4% vantage offer only lasted a year and went back to 3% last October. It did on mine.

actual interest rate on £5000 = 2.4%
Edited by: "chocci" 29th Mar 2014

Original Poster

chocci

actual interest rate on £5000 = 2%


How've you calculated this and ended up at a wrong number?

BustaLinx

How've you calculated this and ended up at a wrong number?


1000@4% =40
2000@3%=60
2000@1%=20
120/5000*100=2.4%

closer than your 3.2%

Apparantly mortgage discount is only is you move mortgage not existing c&g mortgage customer.

deets

not tax free so compare to your isa etc etc etc



At the moment there is not any ISA which pays 3.2% interest in the market

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?

Is it only one of these account per customer?

Looks okay but 'Club Lloyds'? Seriously, they need to fire their marketing department.

Excellent thanks, already with Lloyds for about 30 years so will switch to this one on Monday.:)

pantaiema

At the moment there is not any ISA which pays 3.2% interest in the market

this is 2.4%

pantaiema

At the moment there is not any ISA which pays 3.2% interest in the market



there are other rates of tax.

chocci

this is 2.4%



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.
Edited by: "PhoenixRising" 29th Mar 2014

PhoenixRising

That's not usually how tiered interest works. Usually it means that if … 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.



I agree, although the 3.2% is for 20% tax payers. For those on 40% its actually 2.4%
thisismoney.co.uk/mon…tml

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.

I wonder if you can upgrade vantage accounts to this type?

deets

I agree, although the 3.2% is for 20% tax payers. For those on 40% its … I agree, although the 3.2% is for 20% tax payers. For those on 40% its actually 2.4%http://www.thisismoney.co.uk/money/saving/article-1633425/Calculator-Savings-rates-converter--tax-pay-savings.htmlcould 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.

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.

oddballjamie

I have an old vantage account that gives me 4% interest without any … 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.



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%
Edited by: "chefjeegar" 29th Mar 2014

Nice, thats upto £200 quid in interest a year

deets

there are other rates of tax.



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 ....

oddballjamie

I have an old vantage account that gives me 4% interest without any … 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.



The classic account is now 3% not 4% ...
Edited by: "pantaiema" 29th Mar 2014

chefjeegar

I opened 3 ac's last year and int. is 3% how do i make it go to 4%? Am … 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%



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.

pantaiema

I am fully aware about that. Even 40% tax rate you will end up with 2.4%. … 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 ....



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.
Edited by: "deets" 29th Mar 2014

So ditch the isa's and plot into 123, tsb, and now lloyds accounts?

also don't forget the free gift too:

6 Vue cinema tickets
- Annual Gourmet Society membership
- Annual magazine subscription (digital [iPad only] or printed)

Does anyone know when you get the free gift?

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!

Mister_E

What is the point, they are screwing us, do the right thing and take your … 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!



Yeah, but I can't help but feel its just that little bit safer in the bank rather than under my mattress.
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