TSB ups Monthly Saver rate to 5%

Published by Laura Whitcombe on 01 July 2015.
Last updated on 01 July 2015

TSB ups Monthly Saver rate to 5%

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 - The rate is fixed for 24 months. The minimum deposit is £500 but can only be opened in branch or by post.
TSB has also increased the rate on its 2 Year Fixed Rate Cash ISA to 1.5% AER, up from 1.4%. The minimum opening balance is £3,000 and transfers in are allowed. Withdrawals made within the fixed rate period will incur a charge of 180 days' tax-free interest on the amount taken out.
The best-buy two-year fixed cash Isa available is currently Kent Reliance's Flexible Fixed Rate NISA Two Year Issue 17, paying 1.85% AER. The minimum opening deposit is £1,000 and transfers in are allowed.
[Video: 1]

Leave a comment