A simples guide

Compare Lloyds’ ISA accounts

Over 250 years in the banking industry have made Lloyd’s a household name in Britain. They offer a wide variety of financial products, catering to everything from current accounts to enterprise solutions. Lloyds’ pedigree makes them a popular choice for both personal and business banking and their ISA accounts are no different.


What is a Lloyds ISA account?

Before we discuss the Lloyds ISA in more detail, we must understand what one is. An ISA, is an individual savings account which protects your money from taxation. The government sets an annual ISA limit at the beginning of each tax year. You can meet this limit through a cash ISA or a stocks and shares ISA. Some people opt to combine the two, though the annual ISA limit still applies.

Whether you are new to savings or have an existing savings pot which you want to make work harder, a Cash ISA should always be your first port of call as any interest you earn will be tax free. With a Cash ISA you’re also not risking your returns on the stock market (as you would on a stocks and shares ISA.) Opening a cash ISA is simple. By not paying tax on your interest earned, Lloyd’s cash ISA can make your savings go further.

Lloyds cash ISA rates allow you to earn 0.65% tax-free/AER variable on balances of £40,000 or more. If your balance was lower than £40,000, you’ll still earn 0.60% tax-free/AER variable. These rates are correct as at 11th April 2016 and are subject to change.

Taking advantage of tax-free interest is as simple as opening an ISA account with as little as £1. How often and how much you pay is up to you (as long as you don’t go over the ISA limit) and you won’t be charged for withdrawals. 

Lloyds ISA for first-time buyers

First-time buyers may want to consider Lloyds’ Help to Buy ISA. This allows you to earn up to 2.00% tax-free/AER variable on savings towards your first house. You can open your account with up to £1,000. This initial deposit must be paid within 21 days of opening the account. You’ll then be limited to depositing up to £200 once per month (this must be done by the 25th of each month).

You would then receive 25% of your final balance via the government’s Help to buy scheme. To receive the bonus, you must have saved at least £1,600. Provided you meet both the criteria and the minimum savings then you will get a bonus of between £400 and £3,000. When you close the account, your conveyancer or solicitor will apply for the bonus. You should not transfer your savings to another account until you have received confirmation of your bonus.


When is Lloyds ISA interest paid out?

When the interest on your Lloyds ISA is paid depends on which product you select. You can find some examples below of their policies active in April 2016:

- A Lloyds cash ISA will have its interest paid on the 31st of a March each year

- Help to Buy ISA interest is paid annually on the anniversary of the account being opened

- Two year fixed interest ISA interest is calculated daily and paid at a fixed rate either monthly or annually

It may be worth taking the interest payment date into account when you are choosing which product is right for you. Do note that interest payments do not count towards your annual ISA limit.

How should you compare Lloyds ISA rates?

You can check Lloyds ISA rates against their competitors using our easy comparison service. We have a panel of top ISA providers, so you can find the product that is right for you and your savings goals. So get comparing and see how much you could save!

All Lloyds ISA account details are based on information provided on lloydsbank.com data on 11 April 2016

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