Lloyds TSB introduces changes to Vantage current account

Lloyds TSB is changing some of the tiered interest rates on the Vantage current account; these will come into effect on 27 June 2011.

The Vantage current account is a market leading option for customers looking for a better return on their in-credit balance. The rates of interest vary and are based on a tiered system depending on the daily balance. Vantage offers a competitive rate of up to 3%. Unlike the headline rates seen on the high street, Vantage offers long term good value and will not drop to a ‘standard rate' after an introductory term.

The changes announced today are great news for customers with lower balances as they will see a jump in rate from 0.1% to 1.5%.  From June 27 there will be three interest rate tiers (instead of four). The tiered rates for balances between £1-3k earning 2% and balances between £3-£5k earning 3%, will remain the same.

The top tier rate of 4% on balances over £5k will be removed. However, customers in this category will receive information on the range of competitive savings products available to suit their needs.

Philip Robinson, Lloyds TSB comments: "With Vantage, customers can earn up to 3% AER on their current account. We are simplifying rates and broadening accessibility to customers, most notably those with lower balances. Customers have the potential to earn up to £148 each year by opting for the right current account."

Unlike many high street banks that only offer preferential rates to new applicants, Vantage is available to existing and new customers.  Switching to Lloyds TSB couldn't be easier. With a dedicated Welcome Team on hand, customers will see their standing orders and direct debits transferred with ease. Once complete, customers can start earning competitive interest rates on their current account.