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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
  • Earn interest on your savings tax free, up to a certain amount Learn more about Personal Savings Allowance

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These rates are subject to change and may be withdrawn at any time.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 15 April 2016.

*On 6 April 2016, the Government introduced the Personal Savings Allowance. This means you can now earn interest on your savings tax free, up to a certain allowance. Learn more about Personal Savings Allowance

Length of termGross/AER*Gross monthly*
1 year1.35%1.34%
2 years1.55%1.54%
3 years2.00%1.98%
4 years2.25%2.23%
5 years2.50%2.47%

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.

Tesco Bank will no longer deduct tax on the interest you earn. This is due to the Government’s introduction of the Personal Savings Allowance.

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.

Personal Savings Allowance

Personal Savings Allowance

From 6 April 2016 the Government has introduced a Personal Savings Allowance. This means a basic rate tax-payer can earn £1,000 interest without paying tax and a higher rate tax-payer can earn £500.

The current tax rules are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.

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.

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 0345 678 5678*

Customer services textphone 0345 671 0672*

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

*This number may be included as part of any inclusive call minutes provided by your phone operator.

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.

On 6 April 2016 the Government welcomed the introduction of the Personal Savings Allowance. Following this, Tesco Bank will no longer deduct tax from the interest you earn.

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.