Lloyds TSB has become the latest UK high street bank to launch a high interest savings account as it looks to secure market share in the increasingly competitive sector. The lender is offering an account paying 8% interest on deposits of between GBP25 and GBP250 for two years.
The Monthly Saver account is available to both new and existing Lloyds TSB current account holders and customers can pay in up to GBP750 to kick-start their new savings account.
Account holders can access their money whenever they like and even change the amount they pay in. However, if a customer makes a withdrawal or misses a payment, they can’t replace the funds.
A customer who makes the maximum contribution over two years can save up to GBP6,500 and earn GBP594.68 interest, Lloyds suggests.
Paul Pester, director of consumer banking at Lloyds TSB said: We have designed our Monthly Saver with the customer in mind. We looked at what our competitors are offering and found their products too restrictive. Many only offer the high rate of interest for 12 months, others don’t allow withdrawals and some, like the Alliance & Leicester account, is only available to new customers.