Lloyd’s TSB interest not as good as it sounds

Lloyd’s TSB are current offering “over 150 more days of Interest”. The will you pay you interest from the day money goes in until the day it goes out. Since most banks don’t do this sounds like a good deal, but a lot people won’t gain from this.

It only applies to current accounts you see. The Lloyd’s TSB Classic current account offers 0.1% AER. If you pay in more than £1000 a month you can get the Classic Plus current account which offers 4% AER but that requires you to use online banking. And even then that rate is only on balances up to £5,000 (back to 0.1% after that). If you get an ISA or high interest savings account with an AER of 4%, 4 days interest is more than 150 days interest at 0.1%.

Bottom line, don’t change to Lloyd’s TSB for this reason alone. PS - Banking isn’t exactly common on this blog but I walk past the damn advert every day.