Lloyds Bank is offering customers 1.5% interest rate – but balance impacts what you get

Lloyds Bank encourage customers to talk about money in 2019

The Bank of England Base Rate continues to be held at a historic low of 0.1 percent. The Bank Rate was announced back in March this year, in bad news for savers.

A whole host of cuts to interest rates on savings – and current – accounts have been seen this year.

However, there are still a number of banks and building societies offering current account holders the opportunity to earn more than one percent AER on portions of their money.

The Lloyds Bank Current Account, Club Lloyds, offers variable credit interest.

This account has no monthly fee for maintaining the account if the person pays in £1,500 each month.

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Those who pay in less than £1,500 would need to pay a charge of £3 each month.

With this account, a person can earn monthly credit interest.

This can be earned on balances from £1 up to £5,000.

Rules do apply: account holders need to pay out two different Direct Debits each month.

It’s important to note Standing Orders do not qualify, and quarterly Direct Debits are not eligible.

So, what are the credit interest rates currently offered on this account?

The rates are variable, meaning they may change.

However, at the time of writing, 0.60 percent AER/gross p.a can be earned on balances between £1 and £3,999.99.

The credit interest rate rises to 1.50 percent (1.49 percent gross p.a) on any part of the balance from £4,000 up too and including £5,000.

The interest is worked out daily and then paid monthly.

There is no credit interest payable on the amount of any balance which exceeds £5,000.

Lloyds Ban also offers Club Lloyds customers other benefits such as the opportunity to choose one of its range of Lifestyle Benefits each year.

Another financial provider which currently pays interest on a portion of money in a current account is Nationwide.

The Nationwide FlexDirect account offers an interest rate of two percent AER fixed for a year on up to £1,500.

This is for one year only, after which the interest rate drops to 0.25 percent AER (0.24 percent gross p.a).

Conditions do apply – customers must be 18 or older to open the account and will need to pay in £1,000 per month into the account to get the interest rate.

This does not count transfers from other Nationwide accounts or Visa credits.

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