Fixed rates, fixed terms

Fixed Rate Saver account

Great rates of interest with a choice of fixed terms.

Fixed rates, fixed terms

If you want to make the most of your money, you could consider a fixed rate savings account. Choose how long you want to save for, and make a one-off payment. You can't close your account or take your money out early, but the interest (paid into a separate bank account) is yours to spend how you like.

  • Choose between 1-5 years and enjoy guaranteed rates for your chosen term
  • Make a single deposit between £2,000 and £5m within the first 30 days of account opening

Current interest rates

Our Fixed Rate Savings account rewards commitment – when you choose a longer term, you get a higher rate.  Rate definitions

You can choose to have your interest paid annually or monthly. Learn more about how interest is paid

These rates are subject to change and may be withdrawn at any time. Rates correct as at 21 November 2014.

Length of termGross/AERGross monthlyNet annualNet monthly
1 year1.70%1.69%1.36%1.35%
2 years2.00%1.98%1.60%1.58%
3 years2.30%2.28%1.84%1.82%
4 years2.55%2.52%2.04%2.02%
5 years2.80%2.76%2.24%2.21%

Fixed rate savings accounts - how they work

What fixed term means

What fixed term means

With our Fixed Rate Saver, you'll benefit from a higher interest rate than our instant access savings accounts, but no withdrawals are permitted, so you won't be able to access your money until the end of your chosen term.

Making deposits

Make a single deposit

You can make one deposit of between £2,000 and £5m within 30 days of account opening. You can do this as you open your account or within 30 days – whatever works best for you.

Safe and convenient ways to make your deposit

Send us your lump sum deposit from your current account. You can make a one-off transfer from another bank account or pay by debit card - over the phone or online - by registering for online banking. You can use our handy mobile banking app too.

Access to your money

Your money is locked away

With a fixed rate savings account, you get a higher rate of interest, but you can’t make withdrawals as you go along.

Your money has to stay in the account until the end of your chosen term. So make sure this suits your lifestyle and financial set up.

At the end of your chosen term

When your Fixed Rate Saver is nearing the end of its term, we’ll write to you 30 days beforehand to remind you, and again when your account matures.

You'll have the option to re-invest your balance into a new Fixed Rate Saver, switch to one of our savings accounts or withdraw your money.

If we don’t hear from you, we’ll continuing paying interest on your money at the standard variable interest rate that applies at that time (we'll let you know what this is). And we’ll look after your account until you get in touch.

How interest is paid

How interest is calculated

Your interest is calculated daily from the date we receive your deposit and paid either monthly or annually net of basic rate tax.

If you're a non-tax payer and wish to receive Gross interest, you'll need to complete an R85 form. You can find out more about this in our FAQ below:

If you're a higher rate tax payer, you may have to pay additional tax.

Spend the interest you earn - or save it

This is the good bit. You don’t have to wait to get your hands on your interest. It’s paid into a separate bank account: this could be your current account, an ISA or any savings account you like - just check with your account provider to make sure they accept interest payments. And you can choose monthly or annual payments – whichever you prefer.

FSCS - protecting your money
FSCS - protecting your money

Financial Services Compensation Scheme

Your eligible deposits with Tesco Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme. Any deposits you hold above the £85,000 limit are not covered.

Apply for a Fixed Rate Saver today

Contact us

Have a question or need help applying? Our friendly, UK-based customer service team is here to help.

Help for existing customers

Helpful numbers

Customer services 0845 678 5678

Customer services textphone 0845 671 0672

Lines are open Monday to Friday 8am-10pm, Saturday and Sunday 9am-5pm.

Term coming to an end?

Learn more about what happens when your Fixed Rate Saver account is coming to the end of your chosen term.

Need help with online banking?

Having trouble registering or managing your account online? Don't worry, we're here to help.

Opened your Fixed Rate Saver account before 6 April 2012?

The way we pay interest changed on 6 April 2012, so if you opened your account prior to this, you may need to pay tax straight to HMRC when your account matures.

Important information

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 in to a separate account of your choice and is therefore not compounded.

Net is the interest rate paid after tax is deducted.

Terms & conditions

We want you to be happy with your savings account. To help you decide whether the Tesco Bank Fixed Rate Saver is right for you, please read the factsheet and terms and conditions.

Information for customers who took out a Fixed Rate Saver prior to 6 April 2012

Information for customers who took out a Fixed Rate Saver prior to 6 April 2012

Before 6 April 2012, where a single deposit of £50,000 or more was made into a fixed rate savings account with a term of 5 years or less, interest was paid Gross (without deduction of tax). This meant the account holder was required to pay any necessary tax directly to HMRC.

From 6 April 2012, interest earned on one-off deposits of £50,000 or more into any of our Fixed Rate Saver products was no longer automatically paid Gross. Instead, all interest payments are now paid net of tax at the basic rate.

If you made the deposit into your Fixed Rate Saver prior to 6 April 2012, and selected a 2-Year or 3-Year term, your interest will be paid Gross. If you are a UK taxpayer, you will need to make arrangements to pay the appropriate level of tax directly to HMRC. For more information on how to do this, visit HM Revenue & Customs or call 0300 200 3312.