LHV Bank Challenges Savings Market with Transparent 4.25% Easy Access Account

LHV Bank, the UK-licensed bank specialising in banking services for fintechs and SME lending, has expanded its retail offering with the launch of a new Easy Access savings account. The product enters the market with a highly competitive rate of 4.25 per cent AER (4.17 per cent gross) on balances up to £100,000, positioning itself as a straightforward alternative for savers tired of complex terms and conditions.

The launch reinforces LHV Bank’s digital-first strategy, targeting UK consumers seeking flexibility and transparency in an often cluttered savings landscape. Unlike many competitor products that rely on temporary bonus rates or impose restrictions on withdrawals, LHV Bank’s new offering is designed with a “no-gimmicks” approach. It allows savers to access their funds whenever needed without facing penalties or withdrawal limits.

Cutting through the noise

Kris Brewster, director of retail banking at LHV Bank, highlighted the product’s focus on simplicity as a key differentiator. “This is the savings account we believe the UK market has been waiting for. It’s transparent, flexible, and genuinely rewarding,” he said. “We’re cutting through the noise of bonus rates and hidden conditions to offer a clear proposition for savers who value simplicity and strong returns.”.

The new account complements the bank’s existing retail suite, which includes an interest-paying Current Account that tracks the Bank of England base rate and currently offers 4.00 per cent AER on balances up to £1million. By combining these products with its range of Fixed Rate Bonds, LHV Bank aims to offer a comprehensive ecosystem for savers looking to balance liquidity with competitive returns.

Responding to a shifting landscape

The timing of the launch is significant for non-ISA savers, particularly in light of recent fiscal updates. The bank notes that the product offers a vital alternative for those who may be impacted by the announced reduction in the cash ISA limit to £12,000 per year from April 2027. As tax-efficient wrappers become more constrained for older savers, competitive and flexible standard savings accounts are likely to become an increasingly important tool for wealth management.

Customers can open and manage the new account entirely through the LHV Bank App. To access the savings product, customers are required to hold an LHV Current Account, which serves as the funding mechanism. However, the bank clarified that there is no requirement for customers to use this current account for their everyday banking needs.

Security and stability

Security remains a priority for digital depositors. LHV Bank confirmed that all deposits are protected under the Financial Services Compensation Scheme (FSCS). Currently covering up to £85,000 per person, this protection limit is set to increase to £120,000 from 1 December 2025, offering further peace of mind for those maximizing the £100,000 balance limit of the new account.

LHV Bank has rapidly established itself as a significant player in the UK financial ecosystem. Beyond its retail innovations, it is a major provider of banking services to the fintech industry, enabling over 200 international clients to reach 500 million end-customers across the UK and Europe. The bank is well-capitalised through its listed parent company and maintains a strong financial position, ensuring it can support its lending and savings commitments.

With this latest launch, LHV Bank continues to bridge the gap between institutional-grade financial infrastructure and consumer-centric retail banking products.