Lloyds Bank offers a range of financial products which includes investments, credit cards, loans, insurance, mortgages and current accounts. Under its savings banner, the bank also offers a range of options such as ISAs, fixed rate bonds, regular savings and easy access accounts, which can offer competitive rates both online and offline. However, if you are planning on opening a Lloyds account, remember to compare the rates available with the wider savings market first.
Lloyds Bank was created in the 1980s by the merger of Lloyds Bank and the Trustee Savings Bank. It is now part of the Lloyds Banking Group, one of the UK’s largest financial services companies.
Lloyds Bank Savings Guide
Which savings account you pick depends on your circumstances. If you need to get hold of your cash then an easy access account will be the most suitable. This allows you to dip into your savings when needed, rather than tying up for cash for a specific period, and top up your balance when you like.
Alternatively, you could benefit from a higher rate by opting for a fixed-rate savings account. This will give you the security of a certain rate over a period of, for example, a year, but will restrict access to your cash.
Thanks to the Personal Savings Allowance, savings interest is now paid without any deduction of tax. If you are a standard rate (20%) taxpayer, you can earn up to £1,000 in savings interest tax-free each year. Higher rate (40%) taxpayers can earn up to £500 a year in savings interest without paying tax.
Those on the additional rate (45%) do not benefit from a Personal Savings Allowance and must pay tax on savings interest.
In addition to this tax-free allowance, you can save tax-free in an individual savings account, where every adult has an annual allowance tied to the tax year, which ends each year on April 5 (the ISA allowance is £20,000).
When choosing a Lloyds Bank savings account, make sure to select the best one for your circumstances.
The first £85,000 (as of 30 January, 2017) of any savings held with Lloyds Bank is protected by the Financial Services Compensation Scheme (FSCS).