TSB ups Monthly Saver rate to 5%

1 July 2015
TSB has increased the rate it pays on its Monthly Saver account from 2% gross/AER to 5%.Savers must have a TSB current account to open the Monthly Saver and the most they can deposit each month is £250. The minimum contribution is £25.After tax, the rate received by basic-rate taxpayers is 4% and higher-rate taxpayers is 3%.First Direct's Regular Saver - also only available to its current account customers - pays 6% gross/AER and also has a minimum contribution of £25 a month, but its maximum limit is £300.For new customers not wanting to move their current account, the best rate available on a regular saver is 4% from Kent Reliance.TSB has also improved the rate on its 2 Year Fixed Bond from 1.35% gross/AER to 1.5%.Basic-rate taxpayers with £2,000 to put away will receive a rate of 1.08% after tax, while high-rate payers will earn just 0.81%.However, the best rate on a similar bond currently available on the market - according to Moneywise.co.uk/compare - is 2.3% gross/AER on Punjab National Bank (International)'s 2 Year -

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