TSB brand returning to high street

C&GThe historic banking name TSB is to return to UK high streets under Lloyds' plans to spin-off the business it has failed to sell to the Co-op.

TSB merged with Lloyds Bank in 1995 to create Lloyds TSB, but was once a famous banking brand in its own right.
Its history dates back to 1810, when Trustee Savings Banks were created as part of a movement to encourage those on moderate means to put money aside.

TSBs were initially local institutions that were largely independent of one another, but they began merging in the 1970s to create 16 regional groups, which finally joined forces as one - the TSB Group - that was floated on the London Stock Exchange in 1986.

Its merger with Lloyds Bank nearly a decade later created a major force in UK banking, bringing together TSB's strength in savings and insurance with Lloyds Bank's mortgage and small business banking expertise.

The revival of TSB will also mark the return of the Lloyds Bank standalone name for the first time in 18 years, as it will replace the current Lloyds TSB branding.

But it will see the Cheltenham & Gloucester (C&G) name disappear from town centres, ending a history that dates back to 1850.

Lloyds said the TSB brand will start appearing by the summer on the 632 branches it has to offload under European Union rules on state aid and insisted the network would still act as a challenger bank despite the collapse of the Co-operative deal.

Currently known as Project Verde, the TSB business will have around five million customers, an estimated 8,000 employees and a 4.3% share of the current account market

As a standalone business, it already has the eighth largest branch network in the UK - just behind Halifax.

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TSB brand returning to high street

Figures from charity Age UK show that 29% of those over 60 feel uncertain or negative about their current financial situation - with millions facing poverty and hardship.

Even though saving for retirement is not much fun, the message is therefore that having to rely on dwindling state benefits in retirement is even less so.

To avoid ending up in this situation, adviser Hargreaves Lansdown recommends saving a proportion of your salary equal to half your age at the time of starting a pension.

In other words, if you are 30 when you start a pension, you should put in 15% throughout your working life. If you start at 24, saving 12% of your salary a year should produce a similar return.


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