Tesco Bank interest rates on savings accounts

Tesco Bank®¹ is the financial service arm of retail giant Tesco. Customers can get Tesco credit cards, loans, insurance - and a broad range of savings account products. If you’re interested in building your savings with Tesco this guide is for you.

We’ll cover all of the Tesco Bank interest rates for different products, as well as an overview of the minimum deposit requirements and access options.

And if you need to manage your money in multiple currencies, consider checking out the Wise account from the money services provider Wise. It’s not a bank account but offers similar features.

You can also switch on the Wise Interest to make the most out of your Wise account by investing in a fund that holds government-guaranteed assets. Just note, investment returns, even in a low-risk fund, are never guaranteed, and your capital can be at risk.

Learn more about the Wise account 💰

Intro to Tesco Bank³

Tesco Bank is part of Tesco Personal Finance PLC, and the broader Tesco retail group you may know from your local high street. Tesco Bank has a pretty good range of products for personal customers, including ways to manage your travel money, spend on credit card, insure your home, pets or more - and also a selection of savings accounts.

Tesco Bank is FSCS protected, and overseen by the FCA in the UK. That means it’s a safe provider to use, and your money is protected to the legal maximums allowed in the unlikely event that Tesco were to run into financial trouble.

Tesco Bank savings accounts options

Tesco’s savings account products split into several different broad categories. You can pick:

• Internet Saver account - instant access account with a minimum deposit of just 1 GBP, with a variable interest rate which includes bonus interest for the first 12 months
• Instant Access Cash ISA - instant access account with a minimum deposit of just 1 GBP, with a variable interest rate which includes bonus interest for the first 12 months. Limits apply as this is a tax-free saving option
• Junior ISA - aimed at parents and relatives saving for their children. You can save from 1 GBP, in an account that can only be accessed once the child turns 18. Limits apply as this is a tax-free saving option
• Fixed Rate Saver - lock your money away for 1 year to 5 years, in return for a preferential interest rate. Minimum deposits of 2,000 GBP apply, and you can’t get your money back within the agreed term without penalty
• Fixed Rate Cash ISA - lock your money away for 1 year, in return for tax-free interest and a preferential interest rate. You can’t get your money back within the agreed term without penalty. Limits apply as this is a tax-free saving option

What interest rates are offered by Tesco Bank?⁴

The interest rates you get vary depending on the specific product you want to open. At the time of writing, the Tesco Bank interest rates are as follows:

Product	Interest rate	Minimum deposit	Instant access to your money?
Internet Saver	4.66% Gross/AER (variable) for 12 months 1.25% Gross/AER (variable) after that	1 GBP	Yes
Instant Access Cash ISA	4.3% Gross/AER (variable) for 12 months 1.25% Gross/AER (variable) after that	1 GBP	Yes
Junior Cash ISA	4% Gross/AER	1 GBP	No
Fixed Rate Saver: 1 Year⁵	4.81% Gross/AER	2,000 GBP	No
Fixed Rate Saver: 18 Months⁵	4.65% Gross/AER	2,000 GBP	No
Fixed Rate Saver: 2 Year⁵	4.5% Gross/AER	2,000 GBP	No
Fixed Rate Saver: 3 Year⁵	4.3% Gross/AER	2,000 GBP	No
Fixed Rate Saver: 5 Year⁵	4.0% Gross/AER	2,000 GBP	No
Fixed Rate Cash ISA: 1 Year	4.45% Gross/AER	1 GBP	No

If you’re locking your money into a fixed rate account, the interest rate is fixed as long as you leave your funds for the agreed term. If you hold your money in an account with a variable interest rate, the interest applied can vary depending on market conditions and the bank’s own policies. You’ll always be notified if your rate is about to change.

These rates are correct at the time of writing - 17th June 2024 - but make sure to double-check the live rate before you make a deposit.

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And that’s it - our Tesco Bank savings accounts comparison, covering all the options available in the UK right now. You should now have all the info you need to choose the right account for you, whether you’re looking for easy access, the highest interest rates or a combination of the two.

Also, check out the Wise account in case you manage your money in multiple currencies. You can send, spend and convert your money in 40+ currencies for small, transparent fees* and mid-market exchange rate.

You can also give your money a boost with the Wise Interest feature. It’s not a savings account but offers something different as an investment feature, earning returns on different currency balances. Investments in funds are never guaranteed and your capital can be at risk.

Sign up with Wise today 💰

Interest is offered through Wise Assets. Wise Assets is a trading name of TINV Ltd, a subsidiary of Wise. TINV Ltd is authorised as investment firm and regulated by the Financial Conduct Authority (FCA). Our FCA number is 839689. We do not give investment advice, and you may be subject to pay tax. If you’re not sure, seek qualified advice. You can find more information about the funds on our website.

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Sources used:

1. Tesco Bank - Homepage
2. Wise - Wise Interest
3. Tesco Bank - Website terms of use
4. Tesco Bank - Savings accounts comparison
5. Tesco Bank - Fixed Rate Saver account

Sources last checked on date: 17-June-2024