Lloyds TSB launches Vantage

Lloyds TSB has raised the bar in the battle for current account customers with the launch of ‘Vantage' a new addition to its current account range with tiered interest rates paying customers up to 5 per cent credit interest on balances as high as £7,000.

Vantage is open to both new and existing Lloyds TSB customers and is fee free. To qualify, customers simply need to pay in at least £1,000 a month and stay in credit.

Lloyds TSB will be the only high street bank to offer a fee free current account which pays high credit interest on account balances over £5,000. The industry average gross AER on current account balances of £5,000 is just 0.97 per cent, for a balance of £7,000 this falls to 0.84 per cent.

Research conducted by Lloyds TSB reveals that nearly two thirds of people surveyed (61 per cent) value credit interest on their current account and of those, three quarters say that they would be attracted to a current account which pays more interest the higher the balance they maintain in their account.

Interest is calculated daily so customers earn the maximum amount of interest on their balance throughout the month. The rate earned also applies to the whole amount, for example, if a customer has £5,000 in their account they will earn 5 per cent credit interest on the entire sum.

An analysis of Lloyds TSB customer behaviour shows that as the outlook for the economy has become more uncertain, customers have become more proactive in managing their money. Over the past year, the number of customers transferring money between their Lloyds TSB current accounts and savings accounts increased by 35 per cent with the number of transactions increasing by 40 per cent. But, over three quarters of people surveyed (76 per cent) say that they find moving their money around to get the best rate a hassle.

Vantage is an ideal choice for customers who want to make the most of their money and don't have time to move it around or customers with joint accounts who have two incomes going in every month.

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

Catherine continues; "Up until now, banks have failed to reward people with balances over £2,500 leaving those with bigger balances out in the cold. With many banks slashing their interest rates or not giving customers any interest at all unless they pay a fee, we are confident that this account will prove popular.

Vantage is one of a wide range of products and services Lloyds TSB offers its customers to help them manage and make the most of their money.

Lloyds TSB also offers its personal customers instant interest on the cheques they pay in up to £1,000 and is the only bank to offer customers a ‘Save the Change' facility.