In a significant move for UK banking, LHV Bank has unveiled a new current account that pays customers a competitive 4% AER interest rate. The bank promises this deal comes with no strings attached, directly challenging the offerings of high street competitors.
A Groundbreaking Offer for Savers
The account is designed to track and pay the full Bank of England base rate until January 1, 2027, ensuring customers benefit directly from any future rate changes. This commitment provides a level of transparency and value rarely seen in the everyday banking sector. Furthermore, the interest is paid on balances of up to £1 million, making it an attractive proposition for a wide range of customers, from everyday savers to those with significant liquidity.
Enhanced App-Based Features
Alongside the headline interest rate, LHV Bank has expanded the features of its app-based current account. Customers will have access to a full suite of modern banking tools, including the ability to set up Direct Debits for bills, use Apple Pay and Google Pay for convenient contactless payments, and make foreign currency transactions at the real Mastercard exchange rate without hidden fees.
A Fairer Alternative for Customers
Kris Brewster, director of retail banking at LHV Bank, commented on the launch, stating, “At LHV, we believe every penny in a bank account should earn interest and not sit idle.” He emphasised that the bank is offering a fairer alternative that rewards customers without hidden conditions or gimmicks, directly addressing the issue of consumers being short-changed on their everyday money. The message from LHV is clear: if your current bank isn't providing a fair return, they are positioning themselves as the better option.
