A bank has launched a new savings account with a competitive 4.25% interest rate.
Brits could be missing out on hundreds, or even thousands, of pounds by leaving their savings in non-interest-bearing accounts. A high-interest savings account makes your money work harder. LHV Bank, originally from Tallinn, Estonia, pays 4.17% Gross/4.25% AER on balances up to £100,000 in its Easy Access savings account. The account does not use temporary bonus rates or impose restrictions on withdrawals. Kris Brewster, director of retail banking at LHV Bank, said: “This is the savings account we believe the UK market has been waiting for. It’s transparent, flexible, and genuinely rewarding.
“We’re cutting through the noise of bonus rates and hidden conditions to offer a clear proposition for savers who value simplicity and strong returns.”
This product offers more choice to non-ISA savers, particularly those aged under 65 who, in the longer term, are now facing a reduced Cash ISA limit. In the Budget, it was announced that the annual cash ISA tax-free allowance would drop from £20,000 to £12,000 for people aged under 65 in 2027.
To open LHV’s easy access savings account, customers must hold an LHV Current Account. This account is used to fund LHV savings accounts, and there’s no requirement to use it for everyday banking. People must also be a permanent UK resident and aged 18 or over.
It complements the interest-paying Current Account, which tracks the Bank of England base rate and currently pays 4.00% AER on balances up to £1 million.
What else is out there?
Monument Bank offers a 4.51% AER Easy Access Savings Boosted Rate account, which includes a bonus until 05.01.2027, and the interest is paid monthly.
Revolut’s Instant Access Savings – Ultra account has a 4.50% AER. Interest is paid daily. A key advantage of Revolut is its low-cost international currency exchange and ATM withdrawals, making it ideal for people travelling abroad.
Chase’s Saver With Boosted Rate offers a 4.5% AER, which includes a bonus for 12 months with interest paid monthly.