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Fixed rate savings

Fixed Rate Saver account

Fixed Rate Saver account

Watch your money grow with our Fixed Rate Saver. You choose how long you want to save for and we guarantee you a fixed rate of interest.

  • Choose a term that suits you: between 1-5 years
  • Make a single deposit between £2,000 and £5m within the first 30 days of account opening
  • Earn interest on your savings tax free, up to a certain amount
  • NEW - Following the Government’s introduction of the Personal Savings Allowance, we will no longer deduct tax from your interest earned Learn more about Personal Savings Allowance

Annual interest rates

  • 1.87% Gross/AER
  • For 5 year term.Monthly interest rates may differ from that shown.

Fixed Rate Cash ISA

Fixed Rate Cash ISA

Don't need access to your ISA savings? Then take advantage of our guaranteed interest rate and be rewarded for a fixed-term commitment.

  • Save up to £15,240 tax-free (2016/17 tax year)
  • Watch your savings grow - you've 30 days to deposit up to the maximum allowance
  • Guaranteed interest rate for a year

Interest rate

  • 0.96% Gross/AER
  • Fixed for the 12-month term of your ISA providing your money is kept in the account for the fixed term.

Benefits of fixed rate savings accounts

  • Make a one-off payment and let your savings grow
  • Better interest rates than our instant access accounts
  • Your interest rate is fixed for the term of your savings account
FSCS - protecting your money
FSCS - protecting your money

Financial Services Compensation Scheme

Your eligible deposits with Tesco Bank are currently protected up to the current Financial Services Compensation Scheme limit, the UK's deposit protection scheme. Any deposits you hold above the current limit are not covered.

Important information

Fixed Rate Saver interest rates and definitions

Our current interest rates and available terms are shown below.

Length of termGross/AER*Gross monthly*
1 year1.26%1.25%
2 years1.52%1.51%
3 years1.62%1.61%
4 years1.64%1.63%
5 years1.87%1.85%

These rates are subject to change and may be withdrawn at any time. Rates correct as at 2 December 2016.

Interest is calculated daily from the date we receive your deposit and will be paid to a separate account of your choice either monthly or annually.

*The Government has now introduced a Personal Savings Allowance, which will enable savers to earn interest on their savings tax free, up to a certain amount. We will no longer deduct tax from the interest you earn.

Interest rate definitions

Gross is the interest rate paid before tax is deducted.

Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year. Interest is paid directly into a separate account of your choice and is therefore not compounded