Lloyds Bank offers 5.25% interest for savings accounts

Lloyds Bank has introduced a fixed interest rate of 5.25% for its regular saver account.

Lloyds Bank announces competitive interest rate for savings accounts

Lloyds Bank is now offering a competitive interest rate of 5.25% on its regular savings account. This interest rate is fixed for a 12-month period. The account requires a minimum monthly deposit of £25 and allows users to save up to £250 monthly, contributing a maximum of £3,000 over the term. Savers can earn up to £78.75 in interest, providing a total balance of £3,078.75 after the year. To access this offer, savers must be UK residents aged 16 years or older and hold a current account with Lloyds Bank. Unlike many other accounts, this one permits withdrawals without penalties, but users should note the deposit limits could restrict replacing withdrawn funds.

This move from Lloyds Bank highlights a broader trend in the banking sector, where competition for savers is intensifying. With rates remaining low in many areas, banks are eager to attract customers by offering higher interest rates. However, customers should closely compare alternatives, as other banks like Principality Building Society and Zopa offer even higher rates with various terms. The choice between rates, accessibility, and deposit limits will greatly affect the saver's decision.

Highlights

As banks compete for savers, consumers should evaluate their options carefully.