Lloyds TSB Private Banking Goes after Deposit Accounts

Stephen Harris

8 March 2006

The UK private banking business of Lloyds TSB is attempting to attract clients by offering a high interest rate on its deposit accounts. The bank is offering 5.09 per cent gross per annum for “a higher rate tax payer”, with a minimum investment of £100,000 . This is currently the highest rate of interest paid by a bank in the UK and is more than 1 per cent higher than Lloyds main interest rate for retail customers, its classic plus. The bank says it is offering an even higher interest rate for clients with more than £500,000. Lloyds said there are no penalties for early withdrawals. The bank is currently advertising the high interest rates in the UK financial press.