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Tesco Best Rate savings account pays 2.95%

Supermarket bank launches new fixed-rate accounts

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Tesco sells own-brand digital radios under the Technika brand name

Tesco Bank has entered our Best Rate table for its one-year fixed rate savings savings account, paying 2.95% AER.

Tesco Bank has today launched a new savings product, offering a competitive rate of return for a fixed term deposit of one or two years. The launch comes just days after news emerged that Tesco’s plans to start offering mortgages may be delayed for up to 12 months while it waits for clearance from the Financial Services Authority.

Its Fixed Rate Saver account will pay 2.95% for customers who deposit their savings for a year and 3.50% if they keep their cash tied up for two years. The accounts represent the first products Tesco Bank has launched as a standalone bank, following the buy out by Tesco plc of the RBS share of the business at the end of 2008.

The accounts have a minimum deposit of £2,000 and a maximum deposit of £1 million, with savers able to have their interest paid monthly, annually or on maturity.

Which? Best Rate savings accounts

Which? compares savings accounts based on stringent criteria in order to help you make the most of your money. We look at standard savings accounts as well as fixed-rate savings accounts and cash Isas.

For more information on savings accounts and how to choose the right one for you, read the Which? Savings accounts explained advice guide.

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