Lloyds Bank is offering customers a market-leading 8% interest rate on savings for one year. The rate is significantly higher than the Bank of England's current 3.75% base rate, providing attractive options for savers who have not switched accounts in years.
High Number of Accounts Beating Base Rate
New figures from Moneyfacts show there are now 1,385 live savings accounts paying more than the Bank of England's 3.75% base rate, the highest number in six years. The base rate influences the interest rates banks offer on mortgages and savings accounts.
Lloyds and Santander Regular Savers
Lloyds Bank and Bank of Scotland current account customers can get 8% fixed for 12 months with their regular savings account. Savers can deposit up to £250 per month, which could yield around £120 interest after a year, according to Martin Lewis's savings account guide.
Santander current account customers can also get 8% with its regular saver, though that rate is variable. The account allows monthly deposits of up to £200, earning a maximum of £104 interest after one year. Both accounts allow penalty-free withdrawals and can be opened via the respective bank's app, website, or local branch. To qualify for the 8% rate, customers must have a current account with the bank.
Other Competitive Accounts
Zopa offers a 7.1% variable rate for six months, with a maximum monthly deposit of £300. Customers could earn £36 interest after six months if they deposit the maximum each month. The account can be opened through the app, and customers need a Zopa 'Biscuit' current account.
First Direct has a 7% fixed rate for one year, with a maximum monthly deposit of £300. Opening is online or via the First Direct app, and maximum contributions could earn around £135 interest after a year.
The Cooperative Bank also offers a 7% variable rate for one year, with a monthly maximum deposit of £250, allowing savers to earn approximately £113 after a year.
Expert Advice
Rachel Springall, a finance expert at Moneyfacts, told The Guardian that things are "looking promising" but urged savers to be "proactive" in securing better rates.
