Lloyds share price: Bank reveals plans to simplify savings accounts range
iNVEZZ.com, Wednesday, November 26: Lloyds Banking Group (LON:LLOY) has announced plans to simplify its range of savings accounts, replacing 47 ‘historic’ savings accounts with just three.
The old accounts, offered across the group’s Lloyds, Halifax and Bank of Scotland brands, will be consolidated into instant-access Isa, online easy-access saver and easy-access accounts, all of which will pay interest of 0.25pc — in line with competitors’ offerings, Lloyds stated. However, a third of customers who hold money in any of the 47 accounts will see their income drop as a result of the rate cuts.
The savers worst affected by the changes would lose 25p a month in interest if they had £1,000 in savings. As the average customer has £4,000 in savings, it implies a loss of £1 a month. Lloyds has noted, however, that two-thirds of savers will benefit because they are currently earning even less than the new flat 0.25 percent rate.
A Lloyds spokesman said, as quoted by the Telegraph today: “We are commencing a simplification of our savings accounts. Providing a simpler range of accounts for our customers means that they can make the most of their savings in a simple, clear and easy way.” He added that the group would write to all affected customers at least two months in advance and any withdrawal restrictions would be removed, allowing savers to move into a different account if they wished.
Anna Bowes, director of savings advice website Savings Champion, commented on Lloyds’ move: “As the number of so called legacy savings accounts has grown over the years, more and more providers have implemented a simplification of their range, cutting the number of accounts by at least half.” She added, as quoted by This is Money: “However, not all savers will be pleased as many accounts will/have suffered a rate reduction.”
*h*Analysts on Lloyds share price*h*
As of 14:25 GMT, Lloyds’s share price was trading 0.10 percent lower at 79.51p.
Of the 25 analysts projecting 12 month price targets for the FTSE 100-listed bank for the Financial Times, the median target is 86.00p, with a high estimate of 115.00p and a low of 55.00p.
According to the FT, as of 22 November 2014, the consensus forecast amongst 54 polled investment analysts covering Lloyds has it that the company will outperform the market.
As of 15:11 GMT, Wednesday, 26 November, Lloyds Banking Group share price is 79.56p.