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Lloyds TSB savings account "novel"

07 December 2006
A new scheme from high street bank Lloyds TSB offering savers an electronic piggy bank linked to their debit card, has been described as "novel" by analysts.

Lloyds Bank has launched its innovative new Save the Change scheme which rounds up customers' debit card purchases to the nearest full pound, then deposits the resulting 'change' into a savings account.

If a customer registered with the scheme spent £4.20 on lunch, 80p would be swept up and deposited in a savings account. For February and March next year only, the bank will match any savings made to a top value of £50 each month.

Senior analyst at Hargreaves Lansdown Meera Patel described the new product as "quite novel", particularly as it is tied to a debit card, rather than a credit card cash back scenario, which can tend to encourage debt.

Ms Patel said: "With a debit card it is a different scenario, your money is there in a bank account and you're not borrowing it. I would welcome something like this – it will encourage people to start saving. Over time those pennies build up into pounds."

In launching the product, Lloyds TSB said that over a third of Britons want to save more, but more than one in four have no savings while one in ten have never saved during their lifetimes.

Susan Rice, chief executive of Lloyds TSB Scotland said: "How do people save in an increasingly cashless society... Now, customers can put a little money aside every time they buy a train ticket, a cinema ticket or their weekly groceries."

For more information about savings accounts, click here.

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