Tiered interest on new current account

Published:
26 August 2008
Topic:
News,Money,Current Accounts

Lloyds TSB has launched a new current account aimed at those with large balances. 

The new Vantage account from Lloyds TSB pays between 2% and 5% depending on the balance, with the highest rate of interest available to those with balances of £5,000 or more.

Interest is calculated daily, so customers earn the maximum amount throughout the month. The rate applies to the whole amount, so a customer with £5,000 will earn 5% on the entire sum.

Over the past year, the number of customers transferring money between current and savings accounts increased by 35%, and transactions by 40%.

Vantage is an ideal choice for customers who don't have time to move it around, or accounts with two incomes going in every month.

Spokeswoman Catherine McGrath said: "Customers told us that it was a real bugbear having a low cap on the amount they can earn interest on in their current account. With Vantage, they will be making the most of their current account cash with a rate that's here to stay.

"With many banks slashing rates, or not giving any interest at all unless customers pay a fee, we are confident that this account will prove popular."

 

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