Lloyds Bank is offering customers a market-leading 8% interest rate on savings for one year. It is well above the Bank of England‘s 3.75% base rate, meaning that savers who haven’t considered switching savings accounts in years have some pretty decent options available. It comes as new figures from Moneyfacts show there are now 1,385 live savings accounts paying more than the Bank of England’s current 3.75% base rate, marking the highest number in six years.
The interest rates banks offer on everything from mortgages to savings accounts are influenced by the Bank of England’s base rate. 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.
Lloyds Bank and Bank of Scotland current account customers can get 8% fixed for 12 months with their regular savings account. Savers can stash away up to £250 per month, Martin Lewis revealed in a recently updated savings account guide.
Based on maximum contributions, it could yield savers around £120 interest after a year. Santander current account customers can also get 8% with its regular saver, although that rate is variable. That account lets you put in £200 per month, meaning a maximum interest of £104 could be earned after a year.
For either of these accounts, it is important to note that penalty-free withdrawals are also allowed. All can be opened through the respective banks’ apps or websites, or at a local branch.
Additionally, to qualify for the 8% rate on either of these accounts, customers must also have a current account.
What else is out there?
Zopa offers a 7.1% variable for six months. The maximum monthly deposit is £300, meaning you could earn £36 interest after six months if you put in the maximum every month.
It can be opened on the app, and customers need a Zopa ‘Biscuit’ current account.
First Direct also has an attractive deal, offering a 7% fixed rate for one year. Accounts are opened online or via the First Direct app, and there is a maximum monthly deposit of £300. Maxed out, around £135 interest can be earned after a year.
Cooperative Bank also offers a 7% variable rate for one year. The monthly maximum deposit is £250, allowing savers to earn around £113 after a year.