Lloyds TSB has launched a new range of Vantage current accounts that offer customers the chance to earn four per cent interest on balances of between £5,000 and £6,000.
The new deal is available from Monday September 10th for both new and existing customers who can apply to add Vantage to their current accounts.
There are rules that apply to the four per cent interest offer. Customers must maintain a credit balance throughout the month and credit the account with at least £1,000 during the month and a minimum of two direct debits need to be set up on the account.
As long as these criteria have been met, customers will be able to earn interest on credit balances.
Four per cent interest can be earned on balances between £5,000 and £6,000 until 31st October 2013. No interest is paid on balances over £5,000 after this point.
This means that a customer who maintains a balance of £6,000 for the whole year will earn gross interest of £235.80.
For account holders who follow the same criteria but have less money in their account a range of interest rates apply.
For those who hold a balance of between £1 and £1,000, a rate of 1.50 per cent applies. Between £1,000 and £3,000, customers can earn credit interest of two per cent and on balances between £3,000 and £5,000, three per cent interest applies.
Customers need to apply for the Vantage accounts by October 31st 2012.
Jatin Patel, director of current accounts for Lloyds TSB, said: "Adding Vantage is a smart way for customers to earn more from their current account, and the introduction of our new 4% AER credit interest rate on balances above £5,000 will give customers the chance to make their money work even harder for them over the next year.”