Lloyds savings account: rates, features and more

Zorica Lončar

Want your savings to work harder? Whether you’re putting cash aside for a deposit on a house or are building a rainy day fund, a savings account could be a reliable way to grow your money.

Lloyds is one of the main banks and building societies you’ll come across when shopping around for savings accounts. But what types of saver and ISA do they offer, and what are the interest rates like? We’ll cover everything you need to know about Lloyds savings accounts right here in this guide.

Want to earn a return in multiple currencies? With Wise Interest, you can get a 4.82% variable rate on your GBP balance held in your Wise multi-currency account.

Capital at risk. Current rates do not guarantee future growth.

Variable rate is based on 7 day performance as of 10 Aug 2023. This fund has returned an 0.93% annual average over the last 5 years, excluding Wise and fund manager fees. See full 5 year past performance of funds.

What is a savings account?

A UK savings account is a safe place to put your money and earn interest on it, so it gradually increases in value. The interest is paid by the bank or building society providing the account, and can be at a fixed or a variable rate.

There are a few different types of savings account you can choose from to suit your needs. Your choice may depend on how much you can save, whether you can commit to a regular deposit and whether you need easy access to your money.

Some of the most popular types of savings account in the UK include:

  • Easy access - these offer instant access to your money whenever you need it, with no fees or penalties for withdrawals
  • Fixed-rate - these accounts offer higher interest rates if you can ‘lock away’ your money for a fixed period of time (i.e. 1-5 years)
  • Notice accounts - these give you access to your money, but only if you provide a pre-agreed amount of notice (i.e. 2 months).
  • Regular savers - these accounts require a regular deposit each month, up to a maximum sum.
  • Cash ISAs - these accounts let you earn tax-free interest on your savings up to a certain threshold.

Why open a savings account at all? There are a number of reasons, starting with having a financial safety net. With surplus income earning interest, you can build up a nest egg for later life or just in case you lose your job.

People also open savings accounts because they’re saving towards a particular goal, such as a deposit on a property purchase or the holiday of a lifetime.

How do savings accounts work?

When you open a savings account and make a deposit, the bank or building society is essentially ‘hiring’ your money. They pay you interest in return, and use the money to lend to other people and businesses - or for investment purposes.

You don’t need to worry about access to your money though, as there are strict rules in place on how much banks can lend out and how much they should keep back.

Savings accounts are often a long-term product, which means that over time you may build up quite a large pot. This is why it’s good to know that UK savings accounts have protection of up to £85,000 per person as part of the government’s Financial Services Compensation Scheme (FSCS)¹. If the bank or building society goes under, your money will still be safe.

Types of Lloyds savings accounts²

There are a lot of different Lloyds savings accounts to choose from, so we’ve broken them down into categories - instant access, tax-free ISAs and fixed term savings.

Instant access savings

  • Club Lloyds Saver

    A 1 year account for existing Club Lloyds current account holders, which offers higher interest for balances over £25,000 and can be opened with just £1.

  • Easy Saver

    Another 1 year account which can be opened with just £1, but this one’s available to new customers. However, you’ll need a Lloyds Bank account to transfer money out of the account online.

  • Monthly Saver

    An instant access, 1 year account for existing Lloyds customers requiring a regular deposit of between £25 and £250 every month.

  • Club Lloyds Monthly Saver

    A regular saver for Club Lloyds current account customers, offered a higher fixed rate of interest for 12 months, where you’ll make monthly deposits of £25 to £400.

Tax-free ISAs

  • Cash ISA Saver

    Earn tax-free interest on your savings for a year with this instant access Cash ISA, which can be opened with just £1 and offers a higher rate of interest if you’re a Club Lloyds customer.

  • 2 Year Fixed Rate Cash ISA

    This Cash ISA offers the security of a fixed rate of interest for two years. Withdrawal charges apply and you’ll need to make an initial deposit of at least £3,000 to open this account.

  • Junior Cash ISA

    One of Lloyd’s many savings accounts for children and young people, this Cash ISA offers tax-free interest on balances over £1 to account holders under 17 years old. It’s designed specifically for saving, so you won’t be able to touch the money until you’re 18. The maximum amount you can save is around £9,000 per tax year (until ISA limits change).

Fixed term savings

In addition to the 2 Year Fixed Rate Cash ISA above, Lloyds also offers the following fixed term savings accounts:

  • Fixed Bond

    If you can lock your money away for two years with no withdrawals, this account for new and existing customers offers a fixed rate of interest throughout the entire period. You’ll need to make an initial deposit of at least £2,000.

  • Online Fixed Bond - 2 Years

    This account offers the same terms as the Fixed Bond, but it is primarily managed online. However, you can have up to five Online Fixed Bond accounts open at once³, which can be useful if you’re saving for different things.

  • Lend a Hand Fixed Savings Account⁴

    This is a savings account for people who want to help a family member get on the property ladder through the Lend a Hand Mortgage Scheme. Instead of paying a deposit, 10% of the purchase price can be moved into this account for three years as security against the mortgage.

    The account also pays a fixed rate of interest, and offers £300 cashback for legal services.

Lloyds savings accounts interest rates

Here’s an overview of the interest rates on offer with each of Lloyds’s savings accounts:

AccountInterest rate²
Club Lloyds Saver0.05% gross/AER on balances over £25,000 and 0.01% gross/AER on balances under £25,000
Easy Saver0.01% gross/AER variable for 1 year
Monthly Saver0.75% gross/AER fixed
Club Lloyds Monthly Saver1.00% gross/AER fixed
Cash ISA Saver0.01% tax free/AER variable for 1 year and 0.05%  tax free/AER variable for 1 year - Club Lloyds or Wealth customers
2 Year Fixed Rate Cash ISA0.20% tax free/AER fixed
Junior Cash ISA1.50% tax free/AER variable
Fixed Bond0.20% gross/AER fixed for 2 years
Online Fixed Bond - 2 Years0.20% gross/AER fixed for 2 years
Lend a Hand Fixed Savings Account1.65% gross/AER fixed

How to open a savings account with Lloyds

The first thing to do is check that you’re eligible for your chosen account. For example, some Lloyds savings accounts are only available for Club Lloyds customers, and the majority are for UK residents aged 16-18+ (depending on the account)⁵.

If you fit the bill, you should be able to open most Lloyds savings accounts online. You can also call Lloyds on 0345 300 0000, use the Lloyds banking app or pop into your local branch to start your application⁶.

Sources used for this article:

  1. FSCS - protection
  2. Lloyds Bank - savings
  3. Lloyds Bank - online fixed bonds
  4. Lloyds Bank - lend a hand
  5. Lloyds Bank - club Lloyds saver
  6. Lloyds Bank - easy saver

Sources checked on 18-03-2022.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

Money without borders

Find out more
Personal Finance

Darren's story

Darren is a former professional boxer, and now boxing coach, who fell victim to a marketplace scam when he thought he’d found his dream car: “I’ve always had...

19.06.24 1 minute read

Tips, news and updates for your location