How do you maximise your interest returns by juggling your Lloyds TSB accounts?

Interest Rates & Lloyds TSB Accounts

The following analysis, performed 11 June 2009 is only an example. To maximise your own interest, check the current offers from Lloyds TSB and make your own analysis. Hopefully, my example will help you make your own analysis.

In this example I assume:

• You are a Lloyds TSB customer with a vanilla Lloyds TSB Classic current account.
• You don't want the hassle of trying to maximise returns by juggling personal accounts across several banks. You want to stick with Lloyds TSB.
• You can deposit £1000 each month into a Lloyds TSB current account from an external account.
• You have already taken out a Lloyds TSB Fixed Interest ISA.

Accounts maximising interest rates (net) are:

• Lloyds TSB Monthly Saver Account (4%). Transfer the maximum £250 per month from a Lloyds TSB Current Account with Vantage.
• Lloyds TSB Current Account with Vantage at 3.1% for £7000. Lloyds TSB requires transfers of £1000 per month into this account. 
• Lloyds TSB eSavers account at 1.28% up to £10000, 2% beyond £10000, 1.2% bonus for one year.

What you must do, checklist:

1. Covert your Lloyds TSB Current account to a Lloyds TSB Current Account with Vantage. This can be done instantly online if you already have a Lloyds Current Account.
2. Transfer £7000 to your Lloyds Current Account with Vantage. This can be done instantly if you are transferring from a Lloyds eSaver account. 
3. Set up a standing order of £1000 per month from your external account to the Lloyds Current Account with Vantage.
4. Set up a standing order to transfer £250 per month to the Lloyds Monthly Saver Account from the Lloyds Current Account with Vantage over the phone.
5. Set up a standing order to transfer £750 per month to the Lloyds eSaver Account from the Lloyds Current Account with Vantage. This can be done instantly online.
6. Review the situation of the Lloyds eSaver Account and Lloyds Monthly Saver Account one year from set up, when bonus rates stop. This would be a good time to review the whole plan!

Review the plan if interest rates change. Lloyds TSB should inform you about changes in interest rates.

Disclaimer: This plan discusses interest rates from Lloyds TSB on 11 June 2009 and suggests one way of increasing interest returns for a particular customer on that date. Your circumstances may differ.

If you want to try and beat the low interest rates offered by the Lloyds TSB eSaver accounts then check out our article on juggling monthly saver accounts.