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Five questions answered on the re-emergence of TSB after 18 years

Lloyds TSB re-brand 600 stores.

New Statesman
Lloyds TSB. Photograph: Getty Images

The name TSB will once again feature on the UK’s high streets after Lloyds TSB re-brand 600 of its stores across the country with the name. We answer five questions on TSB’s comeback.

Why has Lloyd TSB branded 600 of its branches TSB?

The bank, which is 39 per cent owned by the taxpayer, is branding the branches TSB – which used to be on the high street 18 years ago – in preparation to sell of the new bank next year as part of a process ordered by the European Commission to provide greater competition.

It was also a condition of the government’s bail out of the bank. 

How will this affect customers of Lloyds TSB?

For the five million people who will have their accounts transferred to the new bank the only change they will experience is a change in name.

Bank account numbers and sort codes will remain the same and no one’s card will stop working because of the switch, the bank has reassured.

Instead customers will receive a new card with the new name in due course.

Until the sell-off will TSB be run as a separate bank or part of Lloyds?

The bank will be run as a separate entity until its shares are sold off next year.

The creation of a separate bank comes after a deal with the Co-operative Group to buy the branches fell through due to concerns about the financial stability of the Group.

What have the experts said?

Many experts have raised doubts over whether selling off TSB as a separate bank will make much difference to competition.

Shore Capital's banking analyst Gary Greenwood told the BBC: "TSB will be painted as a new challenger brand on the high street but I doubt that its pricing is going to be very differentiated to competitors.

"Current accounts tend to be very sticky and customers only tend to move if they have a really, really bad experience."

When was TSB originally set up and what happened to it?

TSB was set up 200 years ago as the Trustee Savings Bank and 18 years ago it was merged with Lloyds.