Savers aiming to build up £5,000 pot in 2012
People are saving for holidays and home ownership more than anything else in 2012, and those who have set clear targets are already well on their way towards achieving their goal, according to the latest data from Lloyds TSB's Money Manager.
Since Lloyds TSB launched Savings Goals in March 2012, its free online service to help people save regularly towards a specific goal, thousands of customers have created their own personal savings targets and have already saved, on average, 11% towards their target in just over two months. The average amount people are looking to save is £5,384, while saving for a house is unsurprisingly the most stretching target with people looking to build a pot of money in excess of £10,000.
Holidays, home ownership and buying a car are proving to be the most popular choices for those setting savings goals, while many are also setting aside money to reduce debts, pay for wedding costs and even prepare for Christmas. Furthermore, merely saving for a rainy day, without a specific target in mind, is proving to be a popular choice for many.
Jatin Patel, director of current accounts for Lloyds TSB, added: "Setting a savings goal can be a very effective way to ensure you regularly put money away to save for a specific item, whether it be a holiday, house, car, or to build a nest egg for a rainy day. We are seeing that customers who do this are reaping the rewards of regular saving and making significant progress towards their goals in a short space of time.
"Savings Goals is one of a number of smart features available with a Lloyds TSB current account aimed at helping customers make the most of their money."
Savings Goals is part of Lloyds TSB's Money Manager, a free, easy-to-use Internet Banking service that can help customers keep track of their money across their Lloyds TSB personal current and credit card accounts.
Setting up a savings goal is easy and allows customers to set a target figure, date and amount they wish to save each month, and monitor progress along the way by using detailed graphs of actual savings compared to their plan. By adding this feature to the Money Manager tool, customers are now able to manage their savings goals alongside detailed analysis of their spending, meaning that the two can be interlinked. Lloyds TSB is currently one of only a few banks to offer such a facility and allows customers to manage multiple goals within the same account.
Money Manager is just one of many smart features on offer with a Lloyds TSB current account, including:
Save the change - a simple everyday way to save towards a goal. Every time a customer uses their Lloyds TSB VISA debit card the amount that is spent is rounded up to the nearest pound and the difference is transferred from a current account into an eligible Lloyds TSB savings account.
Vantage - customers can earn up to 3% AER on balances up to £5,000. To qualify for the tiered variable interest rates customers must pay in a minimum of £1,000 every month and stay in credit.
Added Value Account - customers can upgrade to an Added Value Account and, for a monthly fee, get a range of useful benefits such as Travel Insurance, AA Breakdown Cover, Mobile Phone Insurance and Sentinel Card Protection.