LHV Bank, a fully licensed UK bank, has launched a new current account offering 3.25% AER on all balances up to £1 million. The rate tracks the Bank of England Base Rate minus 1%, ensuring customers always receive a competitive return on their money.
The fee-free current account is designed to disrupt the UK banking landscape, where an estimated £252 billion sits in non-interest-bearing accounts*. Unlike most UK high street banks, LHV ensures every pound in customers’ current accounts earns interest from day one.
New Research Highlights Widespread 0% Interest Problem
Research conducted by LHV Bank in partnership with Opinium, surveying 2,000 UK adults, reveals the extent of the issue:
- Only 30% of respondents earn interest on their main current account.
- 64% believe banks should alert customers if their accounts don’t earn interest.
- 41% support government legislation to ban 0% interest current accounts.**
A Bank Built for Savers
LHV Bank, which secured its full UK banking licence in 2023, aims to become the best place in the UK to save money. In addition to the new current account, the bank offers a range of competitive fixed-rate savings bonds, with more products to be launched in the coming months.
The bank is doubling down on its commitment to UK consumers with a bold campaign targeting “Reckless Savers”—encouraging customers to rethink where they keep their money and start earning interest effortlessly.
Erki Kilu, CEO of LHV Bank, said:“Most banks help people spend money, but at LHV we take a savings-first approach. Every penny in your account should work for you. We’re making it simple to be a ‘reckless saver’ and grow your money without even trying.”
Key Features of LHV’s New Current Account
- 3.25% AER on balances up to £1 million – with no fees
- Instant interest accrual on deposits
- Intuitive mobile banking app for a seamless user experience
- Real-time fraud protection using advanced risk technology
- No fees for UK or international debit card transactions
- Stylish debit cards available in a range of colours
- Google Pay available at launch; Apple Pay coming soon
Kris Brewster, Director of Retail Banking, added:“Millions in the UK are missing out on interest. At LHV, we’re helping people take control with transparency, technology, and truly rewarding returns on their everyday money.”
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