Lloyds increases interest on regular savings account to 6.25%

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While banks have been reflecting the Bank of England Base Rate rises across a number of products, fixed rate savings accounts have been offering some of the highest returns seen in decades. Lloyds customers now have the opportunity to snap up one of the most competitive interest rates on the market with the Club Lloyds Monthly Saver.

The Club Lloyds Monthly Saver is a regular, fixed rate savings account, meaning customers are encouraged to frequently put money away for a fixed, high-rate return at the end of the account’s term.

Fixed rate accounts lock in the interest rate offered at the time of opening, adding a layer of certainty to saving while rates fluctuate. However, these accounts generally impose stricter requirements and restrictions on customers, which can reduce their popularity.

Some requirements include monthly deposits of a specified amount, as well as minimal withdrawals.

However, the Club Lloyds Monthly Saver appears to be of the more liberal accounts of this kind.

The Club Lloyds Monthly Saver is offering customers a competitive 6.25 percent Annual Equivalent Rate (AER).

The account is only available to Club Lloyds current account holders who have not already opened one of these accounts in the last 12 months, and customers must be aged over 18 and a resident of the UK.

The 6.25 percent AER is fixed for 12 months and will be applied on the anniversary of the account opening.

Customers can also benefit from easy access to their cash, with no penalties applied to early withdrawals.

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A minimum deposit of £25 is required to open the account, after which savers must invest £25 to £400 every month by one standing order.

The deposit must reach the account before the 25th of every month and savings can be topped up by bank transfer – as long as it doesn’t exceed the £400 monthly limit.

A maximum of £4,800 can be invested in this account and once the term is up after 12 months, the account will change to a standard saver. Customers can then open a new Club Lloyds Monthly Saver and save for another 12 months.

Just one Club Lloyds Monthly Saver is available in a person’s sole name or jointly held.

For those who don’t have a Club Lloyds current account looking to invest in a regular saver, the current market-leading rate is offered by first direct’s Regular Saver Account with an AER of seven percent on up to £3,600 per year.

The account is available to first direct current account holders and interest is calculated daily and paid on maturity exactly one year after opening. Savers can deposit between £25 and £300 per month in multiples of £5.

Withdrawals are not permitted throughout the duration of the 12-month term. In the event of this, the account will have to close and interest will be paid up to the closure date at the Savings Account variable rate instead.

NatWest and the Royal Bank of Scotland fall just behind with their Digital Regular Savers offering an AER of 6.17 percent.

There are no minimum opening deposits required and savers are being afforded the AER of 6.17 percent on savings up to £5,000. Once the accounts hit £5,000, a 0.65 percent rate will be applied to the rest.

There is no minimum deposit required to open the account and it allows people to save up to £150 each month by standing order. Unlimited withdrawals are permitted without penalty and interest is awarded monthly.

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