Lloyds Offers Record-Breaking 8% Savings Rate Amid Base Rate Surge

Lloyds Bank and Bank of Scotland are offering current account customers an unusually high 8% interest rate on their regular savings accounts for a year. This rate is significantly higher than the Bank of England's base rate of 3.75%. Rachel Springall, a finance expert at Moneyfacts, notes that things 'are looking promising' but urges savers to be 'proactive' in securing better rates.

According to new figures from Moneyfacts, there are now 1,385 live savings accounts paying more than the Bank of England's current base rate, marking a six-year high. This means that savers who haven't considered switching their savings accounts in years have some attractive options available.

The 8% interest rate is available to Lloyds Bank and Bank of Scotland customers with a current account, and they can stash away up to £250 per month. Based on maximum contributions, this could yield around £120 interest after a year.

Santander also offers an 8% variable rate for its regular saver, but this rate is not fixed and has no maximum monthly deposit limit. However, Zopa and First Direct offer more modest rates of 7.1% and 7%, respectively, with similar restrictions on deposits.