Having spoken with a sample of UK consumers Lloyds TSB can see how they are now feeling the pinch as the credit crunch and economic difficulties continue to affect lifestyles.
The view of the future is also seen rather negatively by those surveyed, with an expectation of inflation nudging the 3.8 percent mark in the next year. There were also worries about job security as they see costs spiralling for consumers and businesses. These views are part of the Lloyds TSB Consumer Barometer, where consumer views are reviewed on a monthly basis.
One of the biggest stresses facing the people of the UK are rising prices, with around nine out of ten people seeing prices up from the previous month. Roughly the same number expect to see this trend continue next month as well, further dampening their confidence in the future.
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.
The Alliance and Leicester is advising its shareholders to approve the proposed takeover by Santander to avoid major risks to the business in the future.
A letter has been sent to all Alliance and Leicester shareholders from the chairman explaining that shareholder support would protect them from exposure to the economic slowdown that is hitting many financial institutions. He quoted external factors that are by definition out of the banks control.
The takeover of the Alliance and Leicester is set to go ahead in October, creating a much larger organisation that would be responsible for around ten percent of all the current accounts in the UK.
