Tesco Bank has fired the latest shot in the battle around fixed-rate savings with an improved rate on its one-year fixed-rate savings bond.
The bank has increased the rate on its 1-Year Fixed Rate Saver by 0.15% to 3.40% AER with immediate effect. With the increase in the rate the Tesco one-year bond enters the top three in the Which? one-year fixed-rate bond Best Rate table.
Tesco also offers 2-Year and 3-Year Fixed Rate Saver options that currently provide rates of 3.60% and 3.65% respectively. Short-term bonds won’t, usually, allow early access to the funds.
An attractive rate
Paul Davies, savings analyst at Which?, said of the improved deal: ‘Tesco Bank is the latest provider to target savers with a decent rate on one-year bonds. The new rate of 3.4% is only just behind the current market leader.
‘With the base rate likely to stay where it is for a while, more people are being attracted to the idea of tying their money up for at least a year. The usual warnings apply if you might need to get your hands on the cash in a hurry, perhaps for a deposit on a house or to buy a car.’
Review your savings
With lots of providers changing rates on products at the moment, it’s essential that you are getting the most from your savings and continue to review the rate that you’re receiving.
The Which? 60 second guide to choosing a savings account can give you the information you need to make an informed choice about your money.
- 60 second guide to choosing a savings account – all you need to know about different savings accounts
- Which? Best Rate instant access accounts – market-leading rates if you want your money in a hurry
- Best Rate one-year fixed-rate accounts – all the Best Rates on one-year accounts