Tesco Bank launches 5-year Fixed Rate Saver
21 August 2013
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.
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.
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