Summary box for Lend a Hand Fixed Savings Account
1. What is the interest rate?
- The interest rate is fixed, which means it won't change during the three year term.
- It's paid every year. This will be on the anniversary of when the account changed from an Easy Saver/Club Saver to a Lend a Hand Fixed Savings Account.
- It will be paid to the account you chose when opening the Easy Saver or Club Saver account.
2. Can Lloyds Bank change the interest rate?
This account has a fixed rate of interest so the rate won’t change during the three year term.
3. What might the future balance be?
Below is an example of what the future balance might be, after interest has been paid:
||Balance after XX months
This example assumes that:
- We do not withdraw any money to cover any Lend a Hand Mortgage payment arrears.
- Interest is paid into the account.
4. How do I open and manage my account?
You can apply for this account if:
- It is being opened as part of the Lend a Hand Mortgage Scheme.
- You agree the balance, excluding interest, can be held as security against the Lend a Hand Mortgage.
- You accept you will not be able to access the savings until the charge is released.
- You’re 18 or over and resident in England or Wales.
- Either you or the mortgage applicant have a Club Lloyds current account.
This account can only be opened as part of the Lend a Hand Mortgage Scheme. You should obtain independent legal advice before opening the account.
The mortgage borrower will ask for your consent for them to give us your contact information. We will then send you a brochure about the scheme and call you to open the account. You can only apply over the phone.
You will need to pay your deposit into either an Easy Saver or Club Saver savings account which we can open for you over the phone. The deposit must be 10% of the value of the property and can't be more than £50,000. We need to receive this at least 7 working days before the property purchase completes. Before the house purchase completes the account will change to a Lend a Hand Fixed Savings Account. The account can be held by up to two people. The term starts on the day the account is changed to a Lend a Hand Fixed Savings Account. You can manage the account over the phone.
5. Can I withdraw money?
You cannot take out any money during the term or close the account early.
As the money is held as security against the Lend a Hand Mortgage, we can withdraw from the account to pay off any arrears on the mortgage. This means that you may get back less than you deposited.
After 3 years the account will change to a Standard Saver. See Standard Saver interest rates (PDF). Before this happens, we'll contact you to explain your options and next steps. If the mortgage had been kept up to date then you will then be able to access your savings. However if the mortgage was not kept up to date, the legal charge may continue after the 3 year term with the Standard Saver. You will then be able to access your money when the mortgage repayments are kept up to date for six consecutive months.
6. Additional information
Gross rate means we won’t deduct tax from the interest we pay on money in your account. It’s your responsibility to pay any tax you may owe to HM Revenue & Customs (HMRC).
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will include an AER, it makes it easier for you to compare what return you can expect from your savings over time.