LHV: app-based savings and lending from a UK bank

LHV is a UK bank you join through an app rather than a branch. It takes deposits and it lends, and its consumer-facing savings product is a fixed rate bond. The bond is opened and managed in the LHV Bank app, and the bank's own product page sets out the conditions: you need an LHV Bank current account first, you must be 18 or over, and you must be a UK resident¹. The account is individual only, so joint applications are not accepted¹.

Interest on the six month fixed rate bond is calculated daily and paid at the end of the term, gross, without income tax deducted¹.

What follows covers what LHV offers, who can open an account, how to get in touch, and what happens to your money if the bank fails.

What LHV offers in the UK

LHV's consumer business in the UK is built around deposits and lending. On the deposit side, the product a saver is most likely to meet is a fixed rate bond, which the bank describes as opened and managed in its app¹. On the lending side, the FCA register records permission to enter into regulated credit agreements as a lender, excluding high-cost short-term credit, bill of sale agreements and home collected credit agreements². That is the formal description of what the firm is allowed to do; it is not a statement that every type of lending is offered to every customer.

It also does not appear as a provider of current accounts in the consumer-facing material available, although the fixed rate bond requires an LHV Bank current account to be held first¹.

For a wider view of how deposit-taking banks and their savings products compare as a category, the site's guides to savings accounts and to current accounts set out the options. The banks directory lists institutions by brand.

Savings with LHV and how interest is earned

The savings product described in the available material is a six month fixed rate bond. Three features matter for anyone weighing it up.

Interest is calculated daily and paid at the end of the term¹. That is different from an account that pays monthly or on the anniversary of opening: with this bond, the interest accrues day by day but arrives in one payment when the fixed period finishes.

Interest is paid gross, without income tax deducted¹. Since 2016, banks and building societies have paid interest without deducting tax, and the starting rate for savings allows eligible savers to register with their bank or building society to receive interest without tax being deducted, rather than reclaiming tax already paid from HM Revenue and Customs⁵. Whether any tax is actually due depends on your own circumstances, including your other income and any personal savings allowance. The site's guide to personal tax explains how savings interest is treated.

The account is individual only. Joint accounts are not allowed¹. That is unusual enough to be worth checking before you commit, because it means a couple cannot hold the bond in both names.

Lending from LHV: who it lends to

The FCA register gives LHV permission to enter into regulated credit agreements as a lender, with three exclusions: high-cost short-term credit, bill of sale agreements, and home collected credit agreements². In plain terms, the firm can lend under the regulated credit regime, but not in the three areas the register carves out.

That permission sits alongside its deposit-taking permission, which is what makes it a bank rather than a lender funded by other means. The Bank of England list confirms it as a bank incorporated in the UK authorised to accept deposits³.

If you are considering borrowing, the site's guides to loans, mortgages and credit cards set out how each type of borrowing works, what it costs and what protection applies. The lenders directory lists firms by brand.

Who can bank with LHV

Eligibility for the fixed rate bond is set out on the bank's own product page. You must hold an LHV Bank current account, be aged 18 or over, and be a UK resident¹. The account is individual only, so joint applications are not accepted¹.

That combination has a practical consequence. Because a current account is a precondition, the bond is not a standalone product you can open in isolation; the current account comes first. And because UK residency is required, savers living abroad would not meet the stated condition.

If you are new to opening accounts, the site's getting started guide covers the basics, and everyday money tasks walks through common processes step by step. For anyone who has been turned down elsewhere or has an unusual financial history, the basic bank accounts route is worth understanding: the largest banks are required to offer fee-free basic bank accounts, and the list includes Lloyds (including Halifax and Bank of Scotland)⁶. Nine institutions are designated under the Payment Accounts Regulations to offer basic bank accounts, including HSBC UK⁷.

How to bank with LHV: online and app

LHV is app-based. The bank's own product page states that the six month fixed rate bond is opened and managed in the LHV Bank app¹.

That model is now common, but it changes what everyday banking feels like. Deposits and withdrawals happen by electronic transfer rather than over a counter. If you handle cash regularly, or you want a counter service, an app-only bank is a poor fit, and the site's guide to access to cash explains the rules and expectations around cash services.

For a sense of how branch closures have reshaped UK banking generally, the banks directory and the site's coverage of financial regulation give the wider picture.

Opening an account with LHV

The sequence for the fixed rate bond follows from its eligibility rules. You need an LHV Bank current account first, you need to be 18 or over, and you need to be a UK resident¹. The bond itself is then opened and managed in the app¹.

Applications for bank accounts generally can be completed online, in person or by phone⁸, though LHV's own route is the app. If you are switching from another bank, the site's guide to current accounts covers how switching works and what to expect.

Complaints about LHV and where to get help

If a firm does not resolve your complaint, the Financial Ombudsman Service can look at it, and the site's guide to consumer protection explains how that works and what the limits are.

Two practical points are worth knowing before you complain. First, check the firm you are dealing with is the authorised one: the FCA register is the definitive record, and searching by firm reference number gives the most accurate results⁹. LHV's reference number is 993767². You can also telephone the FCA consumer helpline¹⁰.

Second, keep your own record. Statements, app screenshots and correspondence are what an ombudsman or a regulator will ask for. If you are dealing with a debt collection agency rather than the bank itself, you can contact the FCA to check whether the agency is licensed, check the FCA register, look for a trade body logo on letters, or ask a debt advice charity¹¹. For claims management companies, the FCA Firm Checker tool shows whether a business is registered and has permission to provide claims management services¹².

If money is tight and you are struggling with repayments, free and impartial help is available from debt advice charities, and the site's guide to debt sets out the options and your rights.

Is your money protected with LHV?

Deposits with a UK-authorised bank are covered by the Financial Services Compensation Scheme, which protects money held with firms that fail. The FSCS publishes what it covers and how to check your provider is protected⁹. The most reliable way to confirm protection is to search the FCA register using your provider's firm reference number, which gives the most accurate results⁹. For LHV that number is 993767².

Protection is not unlimited, and it does not cover everything a firm might sell you. The FSCS sets out separately what applies to mortgages and to bad advice¹³, and it warns about property scams that sit outside its scope¹⁴. Investment products are treated differently again, and the site's guide to investing explains where protection applies and where it stops.

For comparison, National Savings and Investments is backed by HM Treasury and protects 100% of savings, unlike other financial providers¹⁵, and its British Savings Bonds are described as 100% secure on the same basis¹⁶. That is a different protection model from the FSCS cap that applies to banks.

If you have lost track of an old account, the site's guide to savings and the wider banks directory can help you work out where to look, and there is a free tracing service for lost bank and building society accounts¹⁷.