Lloyds Bank offers competitive 4.5% interest on regular savings account | Personal Finance | Finance
While there are currently no savings accounts that beat the UK’s staggering 10.7 percent inflation rate, some banks have been offering increasingly higher returns in line with the Bank of England’s consistent Base Rate hikes. Lloyds Bank is currently affording savers a 4.5 percent Annual Equivalent Rate (AER) for a fixed term of 12 months with its regular savings account.
Regular savings accounts are typically seen as the more lucrative route to make a start on building up a savings pot. These accounts typically offer some of the highest interest rates on the market and terms generally encourage savers to pay money into the accounts monthly.
Savers simply have to meet certain requirements on the respective accounts and they’ll earn interest on their savings on the basis they make minimal withdrawals and deposit regularly.
According to Lloyds, its Monthly Saver is “ideal” for those who want to save money every month and have instant access to it.
Account holders must save between £25 to a maximum of £250 every month by one standing order or bank transfer, and savers can only have one Monthly Saver in their sole name or held jointly.
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According to money comparison site Moneyfacts’ Best Buys, ranking top of the leaderboard is Monmouthshire BS’ Christmas Saver Bond (Issue 5) with an Annual Equivalent Rate (AER) of 5.5 percent.
A minimum deposit of £10 is required to open the account and up to £2,400 can be invested over the course of the year.
The account allows up to £200 to be deposited per calendar month and withdrawals are not permitted until October 1, 2023. If the account is closed before this date, it will not qualify for the 5.5 percent AER and instead, will earn interest calculated at 0.2 percent AER.
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There is no minimum deposit required to open the account and it allows people to save up to £150 each month. Unlimited withdrawals are permitted without penalty and interest is awarded monthly.
Placing third is Royal Bank of Scotland’s Digital Regular Saver, also with an AER of 5.12 percent.
Like NatWest, the same interest rules apply to this bank account (5.12 percent paid up to £5,000, then 0.5 percent), interest is applied monthly, and unlimited withdrawals are also permitted.