Lloyds Bank update over how to qualify for extra 0.2% bonus rate on savings

Lloyds Bank has clarified some of its payment rules that you need to follow to qualify for one of its current accounts. Customers may want to look at the Lloyds Premier Account, as it comes with perks including access to boosted savings rates and discounts on your mortgage rate. But there are some commitments you need to keep up with if using the account.

To be eligible, you have to pay in £5,000 or more each month, or have £100,000 in qualifying savings or investments with the provider. These savings and investments can include ready-made investments, share dealing, or retail investments online with Lloyds.

A person interested in the account asked Lloyds over social media about the £5,000 deposit rule. They asked if they could simply do a bank transfer of £1,000 between Lloyds Bank and another bank fives times, to fulfil the requirement.

In response, Lloyds said: "To qualify for the Lloyds Premier Account, you'll need to either pay in £5,000 each month or hold £100,000 in eligible savings/investments with Lloyds. Transferring £1,000 back and forth won't meet the funding requirement the £5,000 must be a genuine deposit."

What are the benefits of the Lloyds Premier Account?

The account comes with a £15 fee, but this is refunded each month you meet either the £5,000 deposit or the £100,000 savings criteria.

Account holders can get a boosted 0.2 percent rate added to the one-year Online Fixed Bond, lifting the rate from 3.35 percent to 3.55 percent. Your premier account will need to have been open for at least 40 days to get the boosted rate.

You can also access the Club Lloyds savings accounts, such as the Monthly Saver which currently pays 6.25 percent, allowing deposits up to £400 a month.

Premier account holders can also get a 0.2 percent discounted rate off the initial rate for a Lloyds mortgage. If you already have a mortgage with Lloyds, you may be able to get the discount when you switch to a new mortgage deal.

You can also earn 1 percent cashback on certain debit card payments, up to a maximum value of £10 per calendar month. Account holders can also get preferential exchange rates when ordering travel money with Lloyds.