Tesco Bank moves to the top of best savings tables


Tesco Bank has raised the rate on its Internet Saver to 1.4% before tax (1.12% after tax) for new savers. The rate includes a 0.6 (0.52) percentage point bonus for the first year.

It puts Tesco among the top payers alongside AA Savings and Post Office, both of which pay 1.4% (1.12%) including a bonus for the first 12 months.

Those aged 50 or more can do better with Saga Internet account at 1.55% (1.24%) for the first year.

Meanwhile other top rates continue to disappear, with Sainsbury's Bank cutting its Extra Saver to 1.1% (0.88%) on £1,000, while Santander e-Saver is down to just 0.7% (0.56%) for new savers.

Find the best Cash Isa or savings account for you

Cash Isas

On fixed-rate bonds the top one-year rate comes from Kent Reliance at 1.9% (1.52%), while the best two-year deal is 2.25% (1.8%) from both State Bank of India UK and Shawbrook Bank.

On easy-access cash Isas the top rate remains at 1.55% tax-free from BM Savings and Post Office. Both include a bonus for the first year.

The top rate with no bonus is 1.5% from National Savings & Investments, but you cannot move your existing cash Isas into this account.

Barclays Bank pays 1.49%, but on a minimum £30,000, and Sainsbury's Bank pays 1.45%; both accept transfers.

You can earn 1.7% tax-free fixed for one year with Post Office, or 2% fixed for two years with Barclays Bank and AA Savings.

This article was written for our sister website Money Observer

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Your Comments

Warning to savers - Nationwide are still forging account records and stealing your money, don't bank with them

These rates are still poor compared to current accounts, so why promote them? As a benchmark, NS&I (no risk) instant access e-saver pays 1.1% gross. In a sane world, High Street banks should ALWAYS pay more.

News about a raise in interest rates by Tesco on the same day that Virgin Bank sends an email lowering theirs from 1.4 to 1.2% in January.

It's all a game to the banks, but I have to keep chopping and changing as interest is a significant part of my income.

But I do note that the article says that this rate from Tesco is only for new savers. I actively boycott companies that won't give loyal customers the same deals as new customers, so I'll find somewhere other than Tesco to transfer almost all of what I've got in Virgin in January unless Virgin pull their socks up. Maybe I'll have yet another savings account soon as I always leave a little back in each in case any of them do see the light.

On the subject of doing the dirty on loyal customers, I'll be changing my landline and broadband soon, but I'm struggling to find a decent company who will not just give cheap deals to new customers, so it looks like a year with yet another provider. But all this switching must be costing these companies a fair bit in admin.

Hogan's comment is disturbing as I have accounts with Nationwide. Any truth in this and what is it based on ?