Tesco Bank to boost easy-access savings to best buy rates

30 November 2017

Tesco Bank is to increase the interest rates on its easy-access Internet Saver and Instant Access Cash Isa accounts for existing customers.

The supermarket giant will boost the savings rate on each of its variable rate accounts by 0.15% from tomorrow, Friday 1 December 2017.

The Internet Saver product will see its interest rate increased from 1.2% to 1.35%, including a 0.8% bonus, while the Instant Access Cash Isa will rise from 1.01% to 1.16%, including a 0.51% bonus.

While this rate increase is in response to the Bank of England raising the base rate, Tesco Bank is not passing on the full 0.25% increase to savers.

In comparison, the current best easy access savings accounts offer 1.3% to savers via the BM Savings BM Internet Saver and RCI Bank Freedom Savings Account. However, be aware that the latter is protected by the French deposit scheme, rather than the UK's Financial Services Compensation Scheme

Meanwhile, the best easy access Cash Isa on the market today comes from Shawbrook Bank at 1.1%.

However, while rates are rising for existing customers, new customers will still be offered 1.2%, including a 0.65% bonus, for the Instant Saver and 1.01%, including a 0.36% bonus, for the Access Cash Isa.

New customers can open either account with a balance of £1 or more.

Read more about savings on Moneywise

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