LHV Bank’s app-based current account offers a competitive in-credit rate of interest and not much else. While there is a promise of more to come, at present, the account is pretty basic. Perfect for earning interest on easily accessible cash, but not set up to be your main squeeze – just yet.
How does it work?
LHV Bank is a digital-only bank that offers a free current account that can only be opened through its app.
The current account is very basic, but it has a few simple features to help you manage your money.
Fee free. It is free to open an LHV Bank current account and there are no ongoing management fees.
Tracker interest rate. LHV Bank’s interest rate tracks 1% below the Bank of England base rate, meaning every time the base rate changes, so will the interest you earn. You can earn interest on balances up to £1 million.
Spending abroad. There are no fees for purchases made abroad with your card.
Card design. You can choose between 7 different card designs and link your card directly to your current account.
LHV is working behind the scenes to bring more features to its current account, including direct debits, real-time notifications, easy access savings and in-app chat support.
Who is it for?
Due to its limited features, LHV’s current account is better suited to someone looking to earn some interest. As you can’t currently pay your salary into the account and it doesn’t support direct debits, it’s better suited as a secondary account, rather than your main current account.
To be eligible for the account, you must be a permanent UK resident and 18+.
Is LHV Bank safe?
LHV Bank is a licensed bank, meaning that up to £120,000 deposited in its current account will be protected by the Financial Services Compensation Scheme (FSCS) if LHV were to go bust. It also means you can complain to the Financial Ombudsman about its bank services.
Pros and cons of LHV Bank
Pros
Free to use
In-credit interest
No fees for using card abroad
Choice of 7 card designs
Cons
Direct debits not yet available
Apple Pay not supported
You can’t pay your salary into the account
Can only be accessed through the app
Our verdict: Is LHV Bank worth it?
Finding a current account that pays a decent rate of interest can be a chore. LHV Bank promises to pay 1% below the base rate, making it one of the highest in-credit rates available on a free current account. However, beyond that, the current account is just starting out and is very basic. For example, direct debits and real-time notifications are in the works but not yet available. Similar to its closest digital rivals, LHV has no fees for using your card abroad, but other than that, its only selling point is its high interest rate. If it is not for you, a similar account is Kroo which also offers an interest rate or other current accounts with high interest.
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Kate Steere is an editor and money expert at Finder, specialising in banking, savings and fintech. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate has a Bachelor of Arts in Modern History from the University of East Anglia. When not working, she can usually be found curled up with a good book or heading out for a run.
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