Opportunity costs of LloydsTSB (Lloyds TSB)

Member Name: millerj

Product:	Lloyds TSB
Date:	24/06/02 (230 review reads)
Rating:

Advantages: Lots of branches, Left handed cheque books, Student/Graduate free overdrafts

Disadvantages: Powerless Staff, Rude staff, Expensive products

Having been with LloydsTSB for about four years now, I can say that they are both terrible and acceptable. I opened a Student account with Lloyds because I was drawn in by the more than generous interest free overdraft of £2,000. This has now been carried over into my graduate account and is available for three years after graduation. They also offer a graduate loan of up to £10,000 repayable up to five years later; I have not taken this up, but the interest rate is good. Those are the only unique selling points that they offer. They are good, but there are plenty of shortcomings to put up with as a result of choosing this bank.

Firstly, the OWN banking centre – a special student/graduate telephone management centre – is totally useless. The brochures harp on about how they are there to assist and offer advice, this is utter crap! On all but one occasion when I have called for help or guidance, they have proved totally useless, only succeeding in wasting my time. The less you have to do with the OWN centre the better, try the phonebank and phonebank express service, they are much more professional.

Walking into a branch is not much good as nobody seems to be a decision maker - unlike at HSBC, they are just there to try and flog you some overpriced product which will never make the best buy tables in the broad sheets. The telephone banking service is a bit better as you don’t have to waste twenty minutes in line at the branch, but they really are not too much better and offer a basic service. The only way to go is with the internet banking facility, which can be found at LloydsTSB.co.uk - Lloyds plans to improve upon this internet service, here's what's in store:

"We are currently looking to add a historical statement facility to the on-line service but as yet we have no definite timescale for this. In the future, historic statement lines will be stored electronically, in a database that will be made availab
le through personal internet banking. You will be able to search for statement details between dates you specify

but also to search for entry types (e.g. show me all the direct debits to BT) or for more specific items (such as cheque number 001234). If a duplicate statement is still required, it will be automatically sent out overnight on official statement paper. As soon as this facility is available details will be posted on the website." Quoting LloydsTSb internet banking

That aside, I am still fed-up with the pitiful interest rates they offer and will move to Cahoot or perhaps Citibank when my interest-free overdraft expiries. Having looked at their full product portfolio, I would recommend that other LloydsTSB account holders stay away from the Select, Gold and Platinum service products. These to my mind are bad value as you have to pay for them, unless you maintain a set credit balance with the gold and platinum products. This just puts cash in the bank's pocket, they only pay 0.1% to you on these balances. If you want the insurance then pay for it somewhere else as you can get better terms and conditions than those offered by LloydsTSB – especially when you compare the Platinum service account with the Amex Platinum charge card. Simple phone Amex and ask for the application form, they are not available at the retail offices or by applying online. Note: Amex Platinum is available for those earning £30K +, Lloyds Platinum service is for those on £35K +

The Create service looks good and I can see a point to that. It is meant for individuals on £60K + it has a special investment arm with Goldman Sachs. It’s a well structured product with a point to it. It has been taken off the market to be re-launched later this year. I believe this is to update it in line with new offerings from the other banks who are due to offer new “black” credit cards similar to the Amex Centurion charge card, which will off
er a concierge and travel services for the affluent individual who is too busy to book his own holiday to Bali.

The other ‘premium products' like the gold and platinum service offerings are rubbish; they are just designed as expensive status symbols. They only work out - just - if you use ALL their options such as the AA service if you have a car. Always remember that is still a piece of plastic no matter what colour it is! It’s the banks who usually get the last laugh with these Gold and Platinum cards.

Lloyds is ok for high earners on the Create and Private banking arm. The private banking arm is for those with £500K + (in cash) to invest. They will also do your taxes and set up trusts to make sure that you pay less tax than your maid.

Summary: