Tesco Bank Increases Rates on All Fixed Rate Savers
26 April 2012
Tesco Bank has increased the interest rates on its Fixed Rate Saver products. The increases to the 1-year, 2-year and 3-year Fixed Rate Savers mean customers can benefit from some of the best fixed rates in the market.
The 1-year Fixed Rate Saver increases to 3.5%, the 2-year and 3-year Fixed Rate Savers are being increased to 3.6% and 3.7% respectively. These interest rates move Tesco Bank products further towards the top of the Best Buy tables, and are guaranteed during the terms of the accounts.
Interest rates for new customers, effective from 26 April 2012:
Fixed Rate Saver Annual Rate*
1 year 3.5% Gross/AER
2 year 3.6% Gross/AER
3 year 3.7% Gross/AER
*Customers can choose to have their interest paid monthly or annually to a separate account of their choice. Monthly rates are available on our website.
David McCreadie, Managing Director, Banking said,
“Tesco Bank continues to offer great deals to customers, and today’s rate increases will further benefit savers looking for great returns for their money over one, two or three years.
“The combination of competitive rates and a simple online application process have proved extremely popular with Tesco customers. The Fixed Rate Saver has seen continued growth since its launch in 2010 and many of our existing customers are now choosing to reinvest in a new Fixed Rate Saver.”
For more information and media enquiries please contact:
Tesco Bank press office
+44 (0) 131 274 3630
Notes to Editors:
Tesco Bank Fixed Rate Saver
- Gross is the interest rate paid before tax is deducted.
- Annual Equivalent Rate (AER) is a notional rate which illustrates what the interest rate would be if paid and compounded each year.
- Interest on this account is paid directly into a separate account of the customer’s choice and is therefore not compounded. Monthly rates are available on our website
- The account allows a single deposit between a minimum of £2,000 and a maximum of £5 million that must be made within 30 days of opening.
- Once a customer has put their money in they can’t close the account early or get money out before the end of the term.
- Customers can visit our website at www.tescobank.com/savings to find out more or to apply.
Tesco Bank Savings
- Tesco Bank saving balances increased in 2011/12 by £330 million, or 7%, double the rate of increase across the savings market as whole.
- Saving with Tesco Bank is quick and easy – customers can open and deposit to a Fixed Rate Saver in approximately 10 minutes.
- Tesco Bank Fixed Rate Saver customers can open online, 24hrs a day, or over the phone between 8am – 10pm
- We prompt savers 30 days in advance of their account maturing to:
- Reinvest in a new Fixed Rate Saver, another Tesco Bank savings product, or withdraw their money,
- If we don’t hear from them we place their money into a roll-over account paying 0.75% interest. (correct as at 26/04/2012)
- We prompt customers again 7 days after their account matures to remind them to contact us.
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Our 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ