Newly-licenced LHV Bank to introduce personal savings via Raisin UK

There’s a new challenger in the UK savings scene.

LHV Bank, which only secured its full banking licence in May, has partnered with Raisin UK to begin rolling out its savings offering to consumers.

The bank told AltFi it will be offering a 12 Month Fixed Term, 95 Day Notice and Easy Access savings accounts, which it promises will benefit both consumers and support its lending growth “boosting the UK SME sector”.

“It’s disappointing that despite the high interest-rate environment, many savers continue to receive low returns,” Erki Kilu, CEO of LHV Bank said.

"We want to introduce more choice and competition into the UK savings market.”

Kilu makes it clear that working with Raisin is “merely our first step” in LHV becoming a direct-to-consumer bank, with it planning to offer savings accounts directly through its own website in 2024.

With LHV’s new banking licence, all customer deposits are protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).

LHV’s SME lending was accelerated by its acquisition of failed lender Bank North in October 2022, today LHV offers real estate and trading loans of between £500,000 and £5m with a strong regional focus.

The bank was previously the UK arm of Estonian financial services giant AS LHV Pank, but since getting its own banking licence has operated as a separate bank in its own right.