Finance: Expert on impact of inflation on savings accounts
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The account in question, named Club Lloyds, offers customers a favourable 1.50 percent interest rate. However, this interest rate is only available for accounts with balances between £4,000 and £5,000. A key benefit to this particular current account is that this interest rate is fixed, so is therefore not going to change during the term.
Customers and future savers with the bank will be able to deposit £25 to £400 monthly to boost their savings pot.
Furthermore, savers will be able to withdraw as much money from their account as they like without the worry of accumulating various charges.
Despite withdrawals being allowed, savers can only make transfers into another Lloyds Bank account.
On top of this, savers should be aware that they may not be able to replace what they withdraw due to the monthly deposit rules.
Banks: Lloyds offering 1.50 percent interest rate on savings (Image: GETTY)
Club Lloyds’ interest is paid out every 12 months after the account is opened and is payable on balances worth £1 or more.
Savers are required to pay out two different Direct Debits from their Club Lloyds account each calendar month.
This is in order for Lloyds Bank customers to earn the credit interest on balances between £4,000 to £5,000.
Potential savers with Lloyds must remember that credit interest is payable on the amount of any balance over the £5,000 threshold.
After earning credit interest, the amount will be paid into a saver’s Club Lloyds current account by the second working day of the following calendar month.
However, if someone does not earn credit interest, they will not receive this payment the following calendar month.
If savers miss out on credit interest for any month, they will still be eligible to earn it in the future.
To do this, savers with Club Lloyds must pay out two separate Direct Debits in the next calendar month.
Banks: This interest rate is only available for accounts with balances between £4,000 and £5,000 (Image: GETTY)
There is no set requirement on this specific Lloyds Bank account to pay out two separate Direct Debits each month.
Savers will only need to pay out two separate Direct Debits each month if they are looking to earn the credit interest on balances between £1 and £5,000.
Through the Club Lloyds current account, savers will be able to choose a different Lifestyle Benefit every year per account.
Said benefits include deals involving movie rentals, magazine subscriptions, dining offers and cinema tickets.
In order to open an account with Lloyds Bank, savers must be aged 18 or over and a UK resident.
This account is only available to Club Lloyds savers and they must not have opened one of these accounts within the year to be eligible for a new one.
Accounts can be opened and managed either online, through the Lloyds app or in your nearest bank branch.