Lloyds Bank to provide summaries

THE END OF the tax year is looming. Do not forget, therefore, to ask for details of the interest on your bank and building society accounts. Only a few savings institutions send out year-end interest statements automatically, writes Sue Fieldman.

Lloyds Bank is joining the ranks of the automatic providers. From next month Lloyds will be sending a summary of the interest earned during the past tax year to customers who have interest-bearing accounts.

There will be a separate summary for each account. They will be dispatched with the first bank statement after 6 April 1993.

Lloyds says that the service will benefit the 30 per cent of its customers who complete tax returns.

There is no charge for the summaries. With a pathetically low interest rate of 0.15 per cent net on current account balances under pounds 1,000, it could be a little embarrassing for Lloyds to charge. The cost of the summary could be more than interest earned.

However, it is a matter of conjecture how long it will send out free statements. Lloyds says it is the first time that a big bank has provided the service automatically for its customers. The other main high street banks will send year-end statements, but you have to ask. There is no charge.

Halifax Building Society will also produce a summary on request. And this year for the first time it will automatically send one to all investors with balances over pounds 5,000.

Abbey National, now a bank, sends out summaries automatically on its saving accounts. Current account customers have to ask.