Get good interest using a Lloyds TSB current account with standing orders to Lloyds, Barclays, and Halifax monthly saver accounts.
This follows on from Get the Best Interest Rates from Lloyds TSB Accounts, with the same disclaimers.
Juggling Monthly Savings Accounts
- You have a Lloyds TSB Classic Account with Vanguard into which you are depositing £1000 each month that can be redistributed to Monthly Saver Accounts.
- Once opened, you can operate all the accounts discussed online.
Lloyds TSB Monthly Saver AccountLloyds TSB Monthly Saver features:
- 5% AER for 12 months.
- Save £250/month, and this must come from your Lloyds TSB Classic account.
- Make as many instant withdrawals as you want, without penalty.
- After a year your cash moves to a low interest EasySaver account.
Barclays Monthly Savings account
- 6% AER for 12 months.
- Save £250/month, by transfer from any account (including your Lloyds TSB Classic account.)
- Make as many instant withdrawals as you want, but interest halves the next month.
- Miss as many monthly payments as you like without penalty.
- New customers must go into a branch to open the account.
- At the end of the 12-month term your money will be dumped into a bog standard Barclays savings account.
Halifax Regular Saver account
- 4% AER for 12 months.
- Save £500/month, by transfer from any account (including a Lloyds TSB Classic account.)
- Make a withdrawal or miss a monthly payment and the account is closed, and interest is reduced to 1.26% for the whole time you were saving.
- You can open this account online.
- On reaching maturity the money is swept into a bog standard Halifax savings account.
Plan of attack for maximum returns
- Set up a standing order to transfer £250 per month to the Lloyds Monthly Saver account from the Lloyds Classic current account over the phone.
- Visit Barclays to set up a standing order to transfer £250 per month into the Barclays Monthly Savings account from your Lloyds Current account. Remember to take along your passport and a UK bank statement less than three months old for identification purposes.
- Set up your Halifax Regular Saver account online to receive the £500 a month from your Lloyds TSB Classic account.
- One year from now, when the accounts have matured, check that your money has been moved into bog standard savings accounts. Now transfer it to better accounts!
There are other banks that offer similar monthly saver accounts, and you are recommended to seek these out if you have more money to save or are looking for different benefits.