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Saving for the future

Find a savings account that works for you and feel confident about what's next.

How can a savings account help you save for the future?

  • Grow your money over time
    Earning interest on your balance gradually builds your savings, helping you prepare for future expenses or goals, without any extra work.
  • Build long-term financial security
    Having money set aside in a savings account gives you a clear view of your progress, helping you feel in control and prepared for what's ahead.
  • Choose an account that suits your timeline
    From easy access to fixed term accounts, you can save in a way that matches how and when you plan to use your money.

Compare our savings accounts

Fixed Rate Cash ISA

With a guaranteed rate for the term, this account offers certainty on how much you'll save towards your long-term goals 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
  • Number of deposits
    Unlimited within 30 days up to £20,000 for the current tax year across all your ISAs
  • Minimum deposit
    £1
Fixed Rate Cash ISA

Internet Saver

Save towards your future at your own pace with the flexibility of instant access. Interest is paid annually.

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

With a guaranteed rate, you can plan ahead with certainty by locking away your money for a term you choose. Interest is paid monthly or annually.

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

A flexible, tax-free way to prepare for whatever the future may hold, with the freedom to access your savings when you need to. 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

The best way to save for the future depends on your goals, your timeframe and how you manage your money.

As a good starting point, think about building a habit of saving regularly, even if it’s only a small amount each month as this can be significant over time. Many people choose to keep their money in savings accounts that offer interest as a secure way of helping their money grow over time.

Here’s a few other tips to help you save:

  • Opening a separate savings account - this will make your savings easier to track and keep you focused.
  • Looking for accounts with higher interest rates - a better rate could help you grow your savings faster over time.
  • Setting up a standing order - committing to regular automatic payments can help build your savings steadily.
  • Reviewing your savings goals - do this regularly, as your priorities may change over time may impact how you choose to save.

Regardless of if you’re saving for life’s big moments, retirement or an emergency fund, saving little and often could give you peace of mind for the future.

There’s no one answer, as how much you should save each month depends on your income, outgoings and what you’re saving for.

Creating a clear budget may help you understand what’s realistic and where you might be able to cut back. Some people set aside a fixed amount each month, while others save what they can.

Even small, but regular, contributions add up over time, especially if you’re using a savings account with a good interest rate.

Both saving and investing could help you grow your money and reach your financial goals.

The main difference between the two is the level or risk and reward.

  • Saving - typically involves setting aside money in savings accounts. Whether that’s a lump sum or more regular deposits, your funds are usually protected and earn interest over time. This is ideal for short or medium-term goals, or if you want the reassurance of knowing your money is safe and accessible.
  • Investing - means putting your money into things like stocks and shares. Over long-term periods, there’s a potential for higher returns, but as investments can lose value, there’s a risk of you getting back less than you put in. As investing works better when it’s left for longer periods of time, it might not be suitable for those who need their funds to be more accessible.

If you’re not comfortable with that uncertainty of if you’re looking at a shorter-term goal, savings may be a better option.

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:

  • strong>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.

Is my money for the future 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