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Tesco Bank launches 5-year Fixed Rate Saver

Tesco Bank is launching a new five-year fixed rate savings account, with a 2.95% Gross/AER that will make the product one of the most competitive in the market. 

In a move that will help customers find greater returns over the long term, the five-year fixed-rate savings account will launch together with a four-year product, which will have a fixed interest rate of 2.65% Gross/AER. Tesco Bank also launches a new 18 month Fixed Rate Saver account offering 1.90% Gross/AER.

The launch of the new products complements the existing Fixed Rate Saver accounts offered by Tesco Bank.  The reintroduced one-year savings account pays 1.75% Gross/AER, the two-year fixed rate account is available at 2.05% and the three-year fixed rate account provides 2.30% Gross/AER.

Interest rate for new customers, effective from 21st September 2013:

Fixed Rate Saver Annual Rate:*

1 year 1.75% Gross/AER

18 month 1.90% Gross/AER

2 year 2.05% Gross/AER

3 year 2.30% Gross/AER

4 year 2.65% Gross/AER

5 year 2.95% 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 the Tesco Bank website.

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For more information and media enquiries please contact:

Tesco Bank press office

+44 (0) 131 274 3630 

Notes to editors

1.1.    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.
  • 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 made their deposit they cannot close the account early or make a withdrawal before the end of the term.
  • Customers can visit our website at www.tescobank/savings to apply.

Tesco Bank Savings:

  • Saving with Tesco Bank is quick and easy – customers can open 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.
  • Tesco Bank prompts savers 30 days in advance that their funds are maturing to:
    • Reinvest in a new Fixed Rate Saver, another Tesco Bank savings product, or withdraw their money,
    • If a customer does not contact Tesco Bank, their funds are placed into a roll-over account paying 0.75% interest.
    • Customers receive a further prompt, 7 days after their account matures, to ask them to contact Tesco Bank.

About 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

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