Lloyds TSB has just announced a new current account, called the Vantage. The account offers tiered rates of interest and is open to both existing and new customers.
There are no fees associated with the day to day running of the Lloyds TSB Vantage account and all customers need to do is pay at least GBP1,000 per month into the account and make sure it stays in credit. Interest rates are worked out on a daily basis and the rate determined is applied to the whole amount held.
The interest rates offered, go from 0.1 percent for the lowest amounts held up to a maximum rate of 5 percent where a balance is GBP5,000 or more. A Lloyds TSB spokesperson said that the tiered structure had been applied to reward customers and show them it was worth keeping their money in the account.
Lloyds TSB has this week increased the rates of interest offered on its Plus current account to 6 percent, an enormous 2 percent more than it was previously.
The new higher interest rate is being offered on this particular Lloyds TSB current account for new customers opening their account before July 13. The only proviso is that at least GBP1,000 per month must be paid into the account, something that is quite common anyway.
Increasing their interest rate is quite a move for Lloyds TSB, though they appreciate that customers in the UK tend to be quite fixed when it comes to their current accounts, tending to stay with the same bank for many years. Lloyds therefore feel they have to really make an impact with their message in order to get people to consider moving and an impact it certainly is.
New Lloyds TSB current account customers will be able to enjoy a 6 percent interest rate if they open the Lloyds Plus account before 13 July.
The account is paying this exceptional rate for 12 months from the date the account is opened on balances up to GBP25,002. After the year is up the interest rate will rever back to 4 percent, still a very good rate in itself. The one proviso made is that at least GBP1,000 must be paid into the Lloyds TSB current account each month.
A spokeswoman from Lloyds TSB proudly stood by the rate offered, delighted that it was offering higher rates while many of its competitors were reducing theirs.