Fixed Rate Saver account

Great rates of interest with a choice of 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 from a range of terms between 1 and 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
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      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          These rates are subject to change and may be withdrawn at any time.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 14 July 2020.

          *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

            Post maturity interest rate

            If we do not hear from you ahead of your fixed rate maturing, your matured funds will remain in the account and revert to a standard variable interest rate (currently 0.10% Gross/AER) until you move them to another account.

              Length of term

              Gross/AER*

              Gross monthly*

              1 year

                0.40%

                  0.40%

                    15 months

                      0.45%

                        0.45%

                          2 years

                            0.60%

                              0.60%

                                3 years

                                  0.65%

                                    0.65%

                                      5 years

                                        0.70%

                                          0.70%

                                            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.

                                                  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.

                                                    Contact your account provider to make your one-off payment into your account. You’ll need your Fixed Rate Saver Sort Code and Account Number to do this.

                                                      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 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 do not hear from you ahead of your fixed rate maturing, your matured funds will remain in the account and revert to a post maturity interest rate until you move them to another account.

                                                          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 in your own name: 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.

                                                                Apply for a Fixed Rate Saver today

                                                                Other ways to save

                                                                1

                                                                Let your money grow with tax-free ISAs

                                                                2

                                                                Compare our savings accounts

                                                                3

                                                                Need more flexibility? Save and access your money when you need it

                                                                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.