high street Lloyds bank branch

Lloyds Bank share sale

  • How to take part in the Lloyds Bank share sale
  • The incentives to take part in the sale
  • The pros and cons of buying shares through a broker
  • Is it possible to buy Lloyds Bank shares now?

The final £2bn of the government's stake in Lloyds Banking Group will be sold to the public this spring.

The government has said that investors will receive a 5% discount on the prevailing market price at the time of the sale. They'll also receive an extra share for every 10 shares they own after a year, up to a maximum value of £200.

Find out more: The beginner's guide to investment – get to grips with the basics 

Demand for Lloyds Bank shares likely to be high 

Early signs suggest that demand for the shares is likely to be high. 

Within a week of the sale being announced, around 250,000 people registered to receive more details on the government's website

More than 170,000 people registered for email updates from investment broker Hargreaves Lansdown within three weeks of the announcement. 

If the sale is oversubscribed, investors applying for less than £1,000 worth of shares will be given priority. 

Find out more: How to invest – our guide to building a diverse investment portfolio

How to buy shares in Lloyds Bank

There are two ways to buy shares in the Lloyds Bank share sale – direct or through a broker.

You can apply directly to the government for shares, either online or by post.

However, many investment brokers are likely to participate in the sale too. And applying through a broker could prove a cheaper and more flexible option in the long run. 

Our fund supermarket review pages analyse the strengths and weaknesses of 13 major brokers to help you work out which offer the right service for you. Our reviews also include our unique ratings for customer satisfaction. 

Find out more: Fund supermarket reviews – choose the best broker for you 

Should I buy Lloyds Bank shares?

Successful investing is all about putting together a diverse portfolio that suits your attitude to risk and your capacity for loss. Buying shares in individual companies can be risky, especially if they make up a large portion of your portfolio.

If you are unsure about whether Lloyds Bank shares are a suitable investment for you, your best bet is to seek financial advice. An adviser will look at your financial circumstances and assess your goals before making personal recommendations.  

Find out more: Financial advice explained – the Which? guide

Can I buy Lloyds Bank shares now? 

Investors can buy shares in Lloyds Banking Group on the open market right away if they wish, but they won't get a 5% discount on their share price or any bonus shares after a year. 

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