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A UK bank has launched a new current account paying customers 4 per cent AER interest.

LHV Bank says there are "no strings attached" to the deal, which pledges to track and pay the full Bank of England base rate until January 1, 2027.

It will pay interest on balances up to £1 million.

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LHV Bank said it has expanded the features of its app-based current account, including:

Direct Debits for bills and regular payments

Apple Pay and Google Pay support

Foreign currency transactions at the real Mastercard exchange rate

Kris Brewster, director of retail banking at LHV Bank, said: “At LHV, we believe every penny in a bank account should earn interest and not sit idle.

"We’re proud to offer a cur

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