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Saving for a house

Our savings accounts could help build your house deposit and get you one step closer to buying your first home or moving to your next.

How can a savings account help you save for a house?

  • Boost your deposit with interest
    Interest you earn on your savings can grow your mortgage deposit, helping you reach your goal faster.
  • Stay in control of your money
    Whether you're saving small amounts each month or a lump sum, a savings account can help you keep track of your progress and reduce temptation to spend.
  • Flexibility to save in a way that suits you
    Choose from a range of savings accounts that offer easy access or fixed terms, depending on when you plan to buy.

Compare our savings accounts

Fixed Rate Cash ISA

If your home purchase is a little way off, you can guarantee your rate for the term and grow your house deposit without paying tax on the interest you earn. Interest is paid annually.

Annual interest Gross/AER 3.95% for 12 months This is a fixed rate for the 12 month term.
Fixed Rate Cash ISA
  • Withdrawals: None Withdrawals
    None
  • Number of deposits:
Unlimited within 30 days up to £20,000 for the current tax year across all your ISAs Number of deposits
    Unlimited within 30 days up to £20,000 for the current tax year across all your ISAs
  • Minimum deposit:
£1 Minimum deposit
    £1
Fixed Rate Cash ISA

Internet Saver

Get instant access to your savings while earning interest annually, a flexible option if you're planning on buying your home soon.

Annual interest Gross/AER 4.20% (variable) This rate includes a guaranteed fixed bonus rate of 3.15% 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.
Internet Saver
  • Withdrawals

    Unlimited
  • Number of deposits
    Unlimited (fixed bonus applies on balances up to £1m only)
  • Minimum deposit
    £1
Internet Saver

Fixed Rate Saver

Enjoy a guaranteed return on your savings by locking your deposit away for a term you choose, helpful if you're planning for your future house deposit. Interest is paid annually or monthly.

Annual interest Gross/AER 4.21% - 4.05% Choose one of our terms between 1 and 5 years. The interest rate will depend on the term and monthly interest rates may differ.
Fixed Rate Saver
  • Withdrawals: None Withdrawals
    None
  • Number of deposits:
Unlimited within first 30 days Number of deposits
    Unlimited within first 30 days
  • Minimum deposit:
£2,000 Minimum deposit
    £2,000
Fixed Rate Saver

Instant Access Cash ISA

Save for your house deposit with the flexibility of instant access, without paying tax on the interest you earn. Interest is paid annually.

Annual interest Gross/AER 4.08% (variable) This rate includes a guaranteed fixed bonus rate of 3.03% 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.
Instant Access Cash ISA
  • Withdrawals
    Unlimited
  • Number of deposits
    Unlimited up to £20,000 for the current tax year across all your ISAs
  • Minimum deposit
    £1
Instant Access Cash ISA
See other savings accounts

Why save with Tesco Bank?

Save with us, bank with anyone

Unlike some other banks, you don’t need to have an existing account with us.

Easily manage your money

Our Mobile App and Online Banking will help you manage your savings, or our friendly call centre colleagues are here if you need help.

Your money is FSCS protected

Your funds are protected up to a total of £85,000 per person by the Financial Services Compensation Scheme.

Useful terms and FAQs

It depends on the price of the property and your budget, but typically you’ll need a deposit of at least 5% of the property’s value. However, some buyers may aim for 10% or more to access better mortgage rates.

Knowing the price range of the homes you’re looking at will help you set a clear savings goal. If you’re finding it difficult to save, there are government schemes to support affordable home ownership could help you get on the property ladder sooner.

Loan to value (LTV) ratio is the value of the property compared to how much you need to borrow as a percentage.

How it works:

  • You buy a property worth £200,000 and pay a £20,000 deposit
  • You get a mortgage of £180,000, as your deposit covers 10% of the property price
  • Your loan to value is therefore 90%

The bigger your deposit the smaller the loan to value ratio will be. A lower LTV can give you access to better mortgage rates, which could make you monthly repayments cheaper. That’s why it’s worth considering when setting your savings goal as your deposit amount can have a big impact.

Saving for a house deposit can take several years, but the exact timeframe depends on:

  • Your target deposit – Most lenders require at least 5%, but aiming for 10% or more can unlock better rates
  • How much you can save each month – A realistic budget will help you stay on track
  • Any savings you already have – A head start can significantly shorten your timeline

Taking advantage of the best interest rates and any government schemes available to you can accelerate your savings growth and reduce the time it takes to reach your goal.

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.

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, source: HMRC “Tax on Savings Interest” 16/09/2024) 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.

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 £20,000.

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.

We don’t offer a Lifetime ISA (LISA) at Tesco Bank, but here’s what you need to know about how they work. A Lifetime ISA is a type of savings account offered to 18–40-year-olds saving for their first home or later life.

Though Lifetime ISAs have a maximum deposit limit of £4,000 per tax year, they provide a 25% government bonus in addition to any interest rate offered by the provider. This is beneficial for first-time buyers looking to boost their deposit.

For example, excluding any interest you may earn, if you save £1,000 into your Lifetime ISA, you will receive a bonus of £250 taking your total savings to £1,250.

It’s worth noting, the £4,000 contributes towards your overall £20,000 ISA allowance for the current tax year.

Lifetime ISAs have deposit and withdrawal limitations as well as other eligibility criteria that may make them less flexible than other accounts available, please always check with your provider.

Yes, if you already have a Help to Buy ISA you can use this towards purchasing your first home however, you cannot open a new one.

You can continue to pay into your Help to Buy ISA until November 2029 and claim the 25% bonus until November 2030.

Is my house deposit safe in a savings account?

Your eligible deposits held by a UK establishment of Barclays Bank UK PLC are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. 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. Any total deposits you hold above the limit between these brands are unlikely to be covered.

Please ask for further information or visit www.fscs.org.uk.

Depositor Protection (FSCS) Information Sheet (113KB, pdf)
Read more about how your money is protected