Review of Club Lloyds Monthly Saver

Written by Karen Bryan

lloyds bank1Update 7 June 2016 – The fixed rate of interest paid on the Club Lloyds Monthly Saver for accounts opened from 7 June 2016 has dropped to 3%.

Some of the highest rates of interest on savings are available on regular savings accounts. Last year I opened a Norwich and Peterborough E-Regular Savings account which paid a fixed rate of 4% with a maximum deposit of £250 per month. I liked the fact that this account was open to all, as frequently you need to hold a current account with the institution to access their enhanced rate regular savings accounts.

I thought I’d open a new regular savings account with the Norwich and Peterborough (N&P) when that account matured. However, I read that you now need to have a current account with the N&P to be eligible.

The Nationwide Monthly Saver pays a variable rate of 2.5% on monthly deposits of £500 – £1,000. The upper limit is much more generous, but the rate of interest is lower, than on many regular savings accounts.

The Club Lloyds Monthly Saver looked alluring, It pays a fixed rate of 4% for the first 12 months. You can make a monthly single deposit of between £25 – £400 by standing order. plus you have instant access to your cash. The catch is that you must hold a Club Lloyds Current Account to apply for this monthly saver account.

Initially that put me off, until I read that the Club Lloyds Current Accounts pays a variable rate of 4% on balances between £4,000 – £5,000.

I decided that with a rate of interest of 4% on both the Club Lloyds current and  monthly saver accounts. it looked like a great deal in the current market, with many instant access accounts only paying around 1% in interest. I will be keeping an eye on the rate of interest paid on the Club Lloyds current account in case it falls.

You need to pay in a monthly minimum of £1,500 and pay out two direct debits every month from the Club Lloyds current account to avoid the £5 a month account fee and to get the rate of 4% on the current account balance.

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