In this brief guide, we will discuss what the Lloyds monthly saver is and how you can potentially use it to increase your monthly savings..
What is the Lloyds Monthly saver?
The Lloyds monthly saver is a Lloyds savings account where you are allowed to save up to £250 a month and in return, you will receive a fixed rate of interest for the year.
You can open the Lloyds monthly saver account if you have not opened a Lloyds monthly saver account within the past 12 months and you are a Lloyds current account holder.
You will need to be at least 16 years of age to open the Lloyds monthly saver account
The minimum you can save each month with the Lloyds saver account is £25 per month.
You have instant access to your money and can withdraw it at any time and this will not affect the interest you are able to earn.
The interest rate in the Lloyds monthly saver is 2.00% gross/AER and it is a fixed rate. This means it won’t change over the term of the account even if you withdraw money from the account. As the rate is a gross rate, this means you will be responsible for paying tax to HMRC.
The money you save in your Lloyds monthly saver must be paid by the 25th of each month in order for it to be counted towards your monthly savings.
You cannot have more than one Lloyds monthly saver account. This can be held in your name or held jointly.
After 1 year(12 months) have passed you will be paid your interest and your Lloyds monthly saver account will switch over to an Easy saver account.
What could you earn with the Lloyds monthly saver account?
An example of what you could earn with the Lloyds monthly saver account:
For example, if you deposit £100.00 every month for 12 months, you will have a balance of £1212.00 after interest is paid.
This assumes that you don’t withdraw any money and interest is paid after 12 months.
How to open?
You can open the Lloyds monthly saver account:
Over the phone
And via post
If you close your account early you won’t be able to open another until the 12 months anniversary of when you opened your initial account.
Can you make withdrawals from the account?
Yes, you can make withdrawals from the account but you cannot replace any money which you withdraw.
There is also the Lloyds club monthly saver which offers a higher interest rate at 2.5% and allows you to pay £200 more with a £400 per month maximum.
In this brief guide, we discussed what the Lloyds monthly saver is. If you have any questions or comments please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.