Savings Accounts

Compare our range of accounts to help get your savings growing

What type of account are you looking for?

Internet Saver

Have instant access to your money and receive your interest annually.

Annual interest Gross/AER

3.95% (variable)

This rate includes a guaranteed fixed bonus rate of 2.90% for the first 12 months (on balances up to £1m), plus our standard variable rate which is currently 1.05%. After 12 months, you’ll continue to receive our standard variable rate.

Withdrawals

Unlimited

Number of deposits

Unlimited

The fixed bonus applies on balances up to £1m only.

Minimum deposit

£1

Instant Access Cash ISA

Save flexibly without paying tax on the interest you earn and receive your interest annually.

Annual interest Gross/AER

3.91% (variable)

This rate includes a guaranteed fixed bonus rate of 2.86% for the first 12 months, plus our standard variable rate which is currently 1.05%. After 12 months, you’ll continue to receive our standard variable rate.

Withdrawals

Unlimited

Number of deposits

Unlimited

Up to £20,000 for the current tax year across all your ISAs.

Minimum deposit

£1

Fixed Rate Saver

Lock your money away for a term you choose and receive your interest monthly or annually.

Annual interest Gross/AER

4.00% - 3.90%

Choose one of our terms between 1 and 5 years. The interest rate will depend on the term and monthly interest rates may differ.

Withdrawals

None

Number of deposits

Unlimited within 30 days

Minimum deposit

£2,000

Fixed Rate Cash ISA

Guarantee your rate for the term and save without paying tax on the interest you earn and receive your interest annually.

Annual interest Gross/AER

3.95% for 12 months

This is a fixed rate for the 12 month term.

Withdrawals

None

Number of deposits

Unlimited within 30 days

Up to £20,000 for the current tax year across all your ISAs.

Minimum deposit

£1

Useful information

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

Gross is the interest rate paid before tax is deducted.

ISA stands for ‘Individual Savings Account’.

When you save in an ISA, the interest you earn is tax-free - meaning you don’t have to pay income tax on it. The tax rules set by HM Revenue & Customs are subject to change, and the value of tax benefits depends on your individual circumstances.

There is a limit to how much you can save in an ISA within each tax-year. For the current tax year, the ISA limit is £20000.

This is the total amount you can save across all the ISA accounts you may hold combined - not per account.

You won’t always have to pay tax on the interest you earn in a regular Savings Account, it depends if the amount of interest you earn exceeds your Personal Savings Allowance.

When you earn interest from a savings account that isn’t an ISA, it will count towards your Personal Savings Allowance.

This doesn’t mean you’ll pay income tax on the interest you earn (most people can earn some interest from their savings without paying tax*) but it could if the amount of interest you earn goes beyond your Personal Savings Allowance.

The Personal Savings Allowance depends on what rate of income tax you pay:

  • Basic-rate (20%) taxpayers: can earn £1,000 in savings interest per year with no tax
  • Higher-rate (40%) taxpayers: can earn £500 in savings interest per year with no tax
  • Additional-rate (45%) taxpayers: £0 – they do not get an allowance
  • If you're a non-taxpayer – that is you have less than £12,570 income per year, you may be able to earn as much as £18,570 in savings interest tax-free

If you’ve been saving in an ISA, the interest you earn won’t contribute to your Personal Savings Allowance. You can learn more about how ISAs work.

Tesco Bank won’t deduct tax from the interest you earn. The tax rules set by HM Revenue & Customs are subject to change, and the value of tax benefits depends on your individual circumstances.

*Source: HMRC “Tax on Savings Interest” 16/09/2024.

FSCS stands for the Financial Services Compensation Scheme. This scheme is an independent body and it’s free to consumers.

Your eligible deposits held by Barclays Bank UK PLC, trading as Tesco Bank, are protected up to a total of £85,000 per person if the bank goes out of business. This limit is applied to the total of any deposits you have with the following: Barclays, Barclays Business Banking, Barclays Premier Banking, Barclays Wealth Management and Tesco Bank.

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