I have had a current account with Lloyds TSB since 1993 - only back in those days, it was just plain vanilla Lloyds Bank, before it merged with TSB (formerly Trustee Savings Bank) two years later and began the process of re-branding its branches and services. Before that time, I had banked with NatWest, as I liked their policy of not investing in South Africa during the apartheid era, unlike most other UK banks. However, my principles fell out of the window as a cash-strapped post-graduate student, as NatWest would not allow me to continue to hold a student account and it would have cost me a fortune to run a "normal" current account. So I switched to Lloyds, who offered not only a student account with generous overdraft, but also a cash incentive to open one. Result.
Later, I converted my student account to a proper "grown-up" current account. This has been re-named a number of times, and I now hold a "classic" account. This is your basic current account that provides free banking, a chequebook and VISA debit card.
You can also exchange foreign currency free of commission (but built-in to the exchange rate, so not much of a perk).
Now, this classic account doesn't pay much interest. That's an understatement. In fact, it pays a (wait for it) staggering 0.1% gross interest (0.1% AER). I really should change my account! But, like so many other people, I have inertia to change. And this is what the banks rely on. It just seems a hassle to re-arrange all those standing orders and direct debits, and to change your bank details for employers and other accounts. But I have it "on my list" to do.
To be fair, Lloyds have recently introduced the "Classic Plus" account, which is very similar to the Classic account, but pays 3.93% gross interest on the first £5000 (4.0% AER). Unfortunately, I can't upgrade to it because you need to pay in at least £1000 per month, and I now only work very part-time (and have a separate account to my husband).
There is no monthly fee for having an overdraft with either account; you just pay interest on the amount overdrawn. I have always found it very easy to change my overdraft limit, either by phone or more recently online, and have never been turned down for an increase. However, this is an expensive way to borrow money, as the rate is currently 1.4% per month (18.2% EAR) for the Classic account, and slightly less for the Classic Plus. (Isn't it curious how they charge people with less money more?)
As well as these two standard current accounts, Lloyds offers a number of "added value" accounts, that is, current accounts with added benefits, for which you pay a monthly fee, starting at £7. This has always seemed strange to me, because the package of benefits, such as AA breakdown cover and mobile phone insurance, are not necessarily something you would buy anyway - so you are not really "saving" money. There is also a "premier banking" service (for which there is still a fee of course) for individuals earning in excess of £60k pa, but I have never used this either.
Likewise, Lloyds has a number of personal accounts tailored to specific circumstances - such as those for students, graduates and young people, and accounts which are interest-free and managed in accordance with Shariah law.
I mentioned above that the main reason that I have not yet changed my account is inertia. While this is true, at the beginning it was also because I had opened my account in my small hometown, and kept my account there when I moved away to work. This meant that I could still ring my branch and receive a very personal service, from people who knew exactly who I was. However, in recent years, this personal touch has been removed. Customers now have to ring on an 0845 number the Lloyds TSB "customer contact centre", based somewhere in India. On most occasions this hasn't been too much of a problem, but when I have had a complex issue to discuss, I have found it difficult to get to speak to the right person, and the time-delay effect makes it difficult to be understood. During the last conversation that I had though, I was told that if I register for phone banking, I would be able to speak to my branch again (although why I should have to register for something that I have been doing for the last ten out of twelve years is beyond me).
One good thing that has been introduced is Internet banking. Once you have registered, this enables you to access your account 24/7 - a very convenient way to manage your account and pay bills, set up or cancel standing orders and direct debits, and transfer money between accounts. I regularly move money around, as my hobby is making money from 0% credit card deals. However, I have discovered a slight limitation with my Lloyds account, which is that you can only transfer £10,000 per day. This is a security measure, but it is a little inconvenient for me, as I sometimes move larger amounts (when paying off credit cards just before the interest kicks in). I had a very busy day recently trying to overcome this limitation to pay off my Egg credit card; I was told one thing by the customer contact centre, another thing at my local Lloyds branch, and, on their advice, also visited Egg's bank, HSBC, to try to arrange an alternative means of electronic transfer, but found that Egg do not accept this alternative means. In the end, despite being told that it could not be done, lo and behold Lloyds did manage to find the back-end "over-ride switch" and the transfer was successfully made. But I was exhausted. You should also note that there are disclaimers all over the Lloyds website regarding any charges that you may become liable for if, for some reason, a payment you request doesn't go through.
If you want to be old-fashioned and actually visit a branch, Lloyds claims to be one of the biggest banking networks in the UK with over 1,900 branches and 32,000 LINK cash machines. The bank does not charge you for using a Lloyds branded cash machine, or another LINK machine, but there may be charges from the owner of the machine, in which case you get an on-screen warning. You can also use any non-LINK machine displaying the VISA sign, but there is a 1.5% charge of the amount withdrawn for this. Perhaps I am the only one who thinks this is a bit steep?
Lloyds offer other services such as credit cards, insurance and mortgages (through their subsidiary, Cheltenham & Gloucester) although I have not found these particularly competitive so far.
For further information please see the Lloyds TSB website: http://www.lloydstsb.com. Latest rates and charges are available from the interest rate hotline 0845 300 0032.
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I have had nothing but bad service from Lloyds, as has my friend (we have to deal with Offshore Services though) and we are both switching away from them. They are so hopeless that we actually are bothering to move banks! I hate Lloyds! Terrible terrible bank.
Sweary 16.01.2006 15:06
I nearly switched recently as I had a lot of trouble with them getting things wrong but that was the first time in 18 years or so.... Usually they're very good. I have a classic account and disclaimers aside the internet banking site is one of the best and easiest to use (honest). Great stuff.... I teetered on the brink of giving you an e for this one, too. Cheers Sweary.
Advantages: Banking service, personal loans, student loans, mortgages, car insurance, house insurance and other additional services that are available, including TORTURE. Disadvantages: All the services mentioned above, are completely useless on the long run. Bad customer service, hopeless cashiers and accounts service, untrained and misguided staff.
Pisces1977 23.12.2004 ·
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Ciao members have rated this review on average: very helpful
Review of Lloyds TSB
Advantages: Offers services you'd expect from a bank, high free overdraft limit for students Disadvantages: Confusion applying, no interest, little contact, constant changes, poor internet banking
a-true-ben 04.09.2001 (28.05.2002)
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Ciao members have rated this review on average: very helpful
Review of LloydsTSB Accounts
Advantages: Pay bills without visiting the bank, online statements, transfer money between your accounts Disadvantages: Statements sometimes a few days behind
Nov 8th, 2005
(Jan 12th, 2006)
exceptional by (2%):
very helpful by (98%):
