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The account pays interest at 5.25 percent on any balances over £1 with the interest paid 12 months after the account is opened. An account can be opened online, via the app, in branch or over the phone.
Savers must deposit at least £25 each month by one standing order or by bank transfer, up to a maximum of £400 each month.
The funds must have reached the account by the 25th of the month to count towards the deposit for that month.
If a person deposited £400 every month, after 12 months they would have a balance of £4,926, if they did not withdraw any funds.
There are no charges for withdrawing funds and money can be transferred out of the account online, into another Lloyds Bank account.
READ MORE: TSB increases interest rates on savings accounts and launches new offer of up to £260
A person will not be able to replace the funds they withdraw because of the monthly deposit limits.
After the account matures at 12 months, the person will be paid their interest and the account will become a Standard Saver, which currently has 0.9 percent interest.
The customer then has the option to open another Club Lloyds Monthly Saver and put aside savings for another 12 months.
Once the account becomes a Standard Saver, a person will need to cancel their standing order or the funds will continue to go over each month.
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Interest rates on many savings accounts have continued to increase over the past 12 months as the Bank of England has continued to hike the base interest rate.
The base rate is currently 3.5 percent with many analysts expecting bosses at the central Bank to up the rates again when they meet tomorrow.
The Bank of England has continually increased the base interest rate in efforts to tackle soaring inflation, which is currently at 10.5 percent.
Stephen Sillars, a content manager at Chip, said: “The UK needs to get a handle on inflation so it’s not really in a position to stop raising interest rates.
“But the Bank of England can’t ignore the fact this may push the economy into more of a downturn than already predicted. It’s a delicate balance.”
Giles Coghlan, a chief market analyst at HYCM, spoke about what he believes the central Bank should focus on in regard to the economy.
He commented: “The head says grind inflation into the ground and raise interest rates hawkishly. For the longer-term health of the economy, historically speaking, this is the best thing to do.
“However, the heart says go a bit easy as people are struggling and many people striking are only doing so as they can’t meet basic needs.”
