Tuesday 5th December 2006
A new savings account has been launched by Lloyds TSB to help those who pay mostly by debit card to put away a little extra each time they make a purchase.
The save the change account is intended to replace traditional methods of saving such as piggy banks, according to Lloyds TSB.
It works by rounding purchases up to the nearest pound and transferring the remainder into a savings account.
Terri Dial, group executive director of retail banking for Lloyds TSB, said: "We want to make it as easy as possible for people to get into the savings habit."
"[Save the change] wont even feel like saving but, at the end of the year, customers will have a nice nest egg."
Lloyds TSB gives the example that if lunch costs £4.20, £5.00 will be debited from the customers current account with the 80p difference being transferred to their savings account.
However, the bank stresses that if the customer is in their overdraft, no such deduction is made and the card behaves like a normal debit card.
Lloyds TSB provides its customers with a choice of instant access savings, online accounts and tax-free Isas.
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