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.
In order to try and balance their accounts Barclays are looking to raise in the region of GBP4 billion from external investors. This is to avoid using a rights issue which could seriously affect their share price.
Barclays Bank currently has one of the lowest capital reserves figures in the industry and will certainly face stiff criticism if this is not being seen to be addressed. Criticism tends to equal falling share prices and the bank do not want to see their position further weakened by such activity.
The bank has many facets to its business, with Barclays Insurance, stockbrokers and high street banking just a number of the best known. There is no question that they are operating well but in the current economic climate and with other financial institutions having suffered already it is important that Barclays can source this additional funding.
Alliance and Leicester shares leapt by almost 50 percent today as news of an agreement regarding the takeover of the bank by Santander was announced.
At a price of 317 pence per share the Alliance and Leicester is being valued at GBP1.33 billion, a price that the Spanish based buyer is happy to pay. The deal is based on trading one Santander share for three Alliance and Leicester ones, making it a very attractive proposition for shareholders and stimulating such fierce trading in them today.
The offer cannot go through without agreement by at least 75 percent of the Alliance and Leicester shareholders, though this is not expected to be an issue. If successful the bid would give Santander, with its other existing UK holdings, a share of the UK savings and unsecured personal loan markets in excess of 8 percent.
