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Lloyds Tsb Incentive Saver Account - 3 % Gross, Max £50k

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If anyone knows whether "the month" of no interest is the previous 28 to 31 days or simply the named month the withdrawal is made, please post.

(ie withdrawal made 22 july... lose interest from 23 June to 22 july or for the whole month of july?)

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If anyone knows whether "the month" of no interest is the previous 28 to 31 days or simply the named month the withdrawal is made, please post.

(ie withdrawal made 22 july... lose interest from 23 June to 22 july or for the whole month of july?)

From the "Important Information":

2.4 If you make a withdrawal in a month you will not earn interest on the Account in that month. A month is taken from the date of account opening, and will fall on the same date each calendar month (or the next working day if this is a non-working day or there is no such date in any particular month).

http://www.lloydstsb.com/legal/savings_leg...er_imp_info.asp

To mods: merge with 'Are The Banks Trying To Attract Savers Again?' thread ?

Edited by narrowescape

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thx for replying and that useful info NE, but no merge because this section here is for savings/investments straight - the main board discusses the broader picture

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thx for replying and that useful info NE, but no merge because this section here is for savings/investments straight - the main board discusses the broader picture

No prob. You're spot on re (no) merge so apologies there. I only ever use "recent posts" so didn't spot that this was in a different forum.

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As you earn no interset on balances over £50k, and the interest is paid monthly, is my best bet to

a. Put in £50k and earn no interest on the interest earnt, I can not withdrawn the interest as I will lose the interest on the whole £50k. (I assume I can not have the interest paid to another account.)

or

b. Put in circa £48.5k and let it compound up to £50k at the end of the term.

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I know I'm replying to my own post, but Ive worked it out.

I am a basic rate taxpayer and these are all round numbers.

If I put the full £50k in at the start I will earn £93.75 per month or £1125 per year in interest and have a balance in the account of £51125.

If I invest £48980 I will earn in month 1 £91.84 of interest, this will compound up untill at the end of month 12, I will have a balance of £50093 and would have earnt £1113 worth of interest.

But I also have £1020 to invest else where. If I invest that at 1.15% net and compound this at the end of the year I will have earnt £12 in interest.

This gives me a total return for my second investment of £1125.

So providing I can get a greater return on my £1020 than 1.15% net then I am better off putting in the £48980.

But frankly it makes pi$$ all difference. Even if I invest the £1020 at 2.25% net, 3% gross, I still do not make enough 'profit' for 2 packs of fags.

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No prob. You're spot on re (no) merge so apologies there. I only ever use "recent posts" so didn't spot that this was in a different forum.

thx again for looking into the definition of "month" - we always have to be careful when we see that word

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