From today, Lloyds Bank will be increasing the interest rates on one of its most popular accounts. Lloyds will pay new customers a 6.25 percent interest rate on its Club Lloyds Monthly Saver account.
This is an increase of 100 basis points – a welcome rise for savers in the current climate.
The interest rate is a fixed one, so it won’t change throughout the term, providing savers with peace of mind and clarity.
The interest is then paid out 12 months after a person opens this account.
Those who save in this account will be able to withdraw their money whenever they like without charge.
Similarly, these savers must have not already opened one of these accounts in the last 12 months.
Britons will need to be aged 18 or over and a UK resident if they wish to qualify.
In a further incentive for savers, Lloyds is also offering £200 to those switching to a Club Lloyds Silver or Club Lloyds Platinum account, before March 7, 2023.
However, preferential savings rates are not the only benefit of this account.
Club Lloyds customers are also able to pick a lifestyle benefit – such as cinema tickets or a magazine subscription.
They will also be able to earn credit interest on current account balances up to three percent.
Finally, there will also unlock preferential exchange rates on travel money when they order from Lloyds Bank.
The Club Lloyds interest rate hike is not the only interest rate increase savers can expect.
Lloyds Bank, Halifax and the Bank of Scotland will also be increasing rates on a number of other fixed rate accounts.
Lloyds Bank is offering the following:
- Monthly Saver – new rate: 5.25 percent
- One Year Fixed Rate – new rate: 3.90 percent
- Two Year Fixed Rate – new rate: 3.90 percent
- Two Year Fixed Rate Cash ISA – new rate – 3.50 percent.
Bank of Scotland has raised interest rates in the following ways:
- Monthly Saver – new rate: 5.50 percent
- Two Year Fixed Rate – new rate: 3.90 percent
- Two Year Fixed Rate Cash ISA – new rate: 3.50 percent.
Halifax’s interest rate increases are as follows:
- One Year Fixed Rate – new rate: four percent
- Two Year Fixed Rate – new rate: four percent
- One Year Fixed Rate Cash ISA – new rate: 3.60 percent
- Two Year Fixed Rate Cash ISA – new rate: 3.60 percent.
Rachel Springall, finance expert at Moneyfacts told Express.co.uk about the benefits of a regular savings account.
She explained: “One way to get into the habit of saving monthly would be to commit to a regular savings account, as these are designed for consumers to make frequent deposits.
“They are more rigid than easy access accounts and harsh penalties can be applied if payments are missed or withdrawals are made, so they are most suitable for savers who need a strict savings plan and who wish to avoid dipping into their cash early.
“Savers will need to compare regular savings accounts carefully, as some are only available to current account customers or even local customers.”
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