The banking giant has upped the rate on the Club Lloyds Monthly Saver from 5.25% to 6.25% gross/AER for new customers opening the account.

This linked savings account can be opened and managed online, via app, in branch or by phone for Club Lloyds current account holders who have not already opened one of these accounts in the last 12 months.

It allows you to save between £25 and £400 each month which needs to reach your account before the 25th of the month.

If you were to deposit the maximum £400 a month over the year, you would have a balance of £4,950 after interest is paid at the end of the term.

However, this regular saver allows you to withdraw your cash penalty-free.

After 12 months, the account will change to a Standard Saver which currently pays up to 1% gross/AER depending on your balance.

The Monthly Saver is only available to those with a Club Lloyds current account (there are several to choose from), and it’s important to note that these come with a minimum monthly deposit amount and charge a monthly fee.

As an example, the popular Club Lloyds current account has a £3 monthly fee, though this is waived each month you pay in £1,500 or more. However, from 1 April 2023, you’ll need to pay in a higher £2,000 a month to swerve the £3 fee.

Here are the requirements for the other accounts:

• Silver Account: £10 monthly fee
• Club Lloyds Silver: £10 monthly fee and £3 a month Club Lloyds fee (waived each month you meet the minimum deposit amount)
• Platinum: £21 a month
• Club Lloyds Platinum: £21 a month fee plus the £3 a month Club Lloyds fee (waived each month you meet the minimum deposit amount).

Lloyds is currently running a £200 bank switch offer for anyone moving their everyday banking to it via the Current Account Switch Service (CASS).

It’s available on the Lloyds Bank Silver Account or Lloyds Bank Platinum Account only, and the offer closes on 7 March 2023.

Related: All the banks offering up to £200 for switching current accounts 
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