Fool.co.uk comments on the launch of Lloyds TSB’s “Save the Change” scheme

PRLog (Press Release) – Dec 06, 2006 – Through the scheme, bank customers who pay for goods and services using debit cards will have the amount of the transaction rounded up to the nearest pound. The change will then be transferred into a nominated Lloyds TSB savings account at the end of the day.

To encourage savers to take up the proposal, Lloyds TSB will match the amount saved during February and March. Additionally, customers can also nominate another person to receive the savings. A number of savings accounts can be used for the scheme, but the bank has specifically excluded its Term Deposits, Monthly Savers, Child Trust Funds and ISA products.

David Kuo, Head of Personal Finance at www.Fool.co.uk says: “Save the Change should help many people who live from pay cheque to pay cheque onto the first rung of the savings ladder.

“But consumers must be aware that “Save the Change” is unlikely to amount to much at the end of the year given that you can only accumulate more by spending more! If anything, “Save the Change” may even trick people into believing that they don’t need to save since they are already saving by using their debit cards.

“A much better idea is to budget carefully and sweep unneeded funds into a high interest savings account at the start of the month. What’s more many accounts pay better rates than those offered by Lloyds TSB!

“Remember, it’s not what you earn that makes you rich – it’s how you spend what you’ve got that counts”

-ENDS-

For further information, please contact:

Sonia Rehill
PR Manager
DD: 020 7297 8159
soniar@fool.co.uk

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