Financial Services > e-banking > Banking news
New banking service offers instant interest on cheques

Wed, 26 Apr 2006

Lloyds TSB has launched a new banking service that offers instant interest on cheques the moment they are paid in.

The bank is the first to offer such a banking service and it means that all current account holders will receive immediate interest on cheques of up to £1,000 and they will be able to have access to the cash straightaway.

Even customers with an overdraft will benefit from the new banking service as it means that the level of interest they are paying will be immediately reduced as soon as the cheque is paid in.

Lloyds TSB said the move was initiated by customer feedback on current banking services that revealed that 90 per cent of UK current account holders were angry that they didn't get instant interest on cheques.

A similar number of customers said they were irritated about being charged interest on overdrafts, despite having paid in cheques to clear the due amount.

"Customers feel cheated when they pay in a cheque and don't earn interest straight away. From today, our customers stand to earn over 150 days' more interest and we invite people who are losing interest in their bank to switch to us," commented Lloyds TSB's group executive director, Terri Dial.

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Save on your mortgage

Save on Your Mortgage

Save money on your mortgage? Fill out our quick mortgage enquiry form.

Health cover, life insurance and PMI

Health Insurance

Find Critical illness, Life and Private Medical Insurance PMI policies.

Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company