Lloyds Bank has unveiled a new savings product offering a headline interest rate of 6.25%, providing a significant boost for customers looking to grow their money in the current economic climate.
Key details of the Club Lloyds Monthly Saver
The offer, known as the Club Lloyds Monthly Saver, is exclusively available to existing customers who hold either a Club Lloyds or a Premier current account with the bank. To be eligible, applicants must be aged 18 or over and be a resident of the United Kingdom.
This is a fixed-term account where savers can earn 6.25% gross interest, which will be paid out in a lump sum after the 12-month term concludes. A key feature is the flexibility it offers; customers are free to make withdrawals at any point during the term without facing any penalties or charges.
How the account works
To open and maintain the account, customers must set up a regular monthly deposit. This can be done via a standing order or a direct bank transfer. The monthly deposit amount is flexible but must fall within a set range: between £25 and £400 each month.
For savers who are able to maximise their contributions, the potential returns are substantial. If an individual saves the maximum £400 every month for the full 12 months, they would deposit a total of £4,800. With the 6.25% fixed interest applied, the final balance after one year would be approximately £4,950.
Leadership changes at Lloyds Banking Group
The launch of this competitive savings product coincides with a significant executive appointment within Lloyds Banking Group. The group has announced that Peter Fitzgerald will be taking on the role of Chief Investment Officer.
Commenting on the appointment, Chirantan Barua, CEO of Scottish Widows and CEO of Insurance, Pensions & Investments, stated: "Peter’s appointment marks an exciting new chapter for Lloyds Banking Group. His deep expertise in multi-asset investing and proven leadership will help us deliver even greater value for our customers across Scottish Widows and Schroders Personal Wealth."
Peter Fitzgerald added: "I’m delighted to join Lloyds Banking Group at such a pivotal time. I look forward to building on the strong foundations laid by Kevin and driving innovation in investment solutions for our customers."
The introduction of this high-interest savings account represents a clear move by Lloyds to retain and attract customers seeking better returns on their cash, while the new CIO appointment signals a continued focus on strengthening its investment and wealth management divisions.
