Tesco Bank 1-year Fixed Rate Saver paying 3.25%

Tesco Bank is offering customers an interest rate of 3.25% Gross/AER (annual interest) on its 1-year Fixed Rate Saver from Thursday 8 March 2012, making it one of the best fixed rate savings rates available in the market.

Since its launch in 2010, the Fixed Rate Saver has seen continued growth, with almost 50,000 customers by the end of 2011. The savings account continues to be popular among Tesco Bank customers, with approximately two-thirds of existing customers investing in a new Tesco Fixed Rate Saver on maturity.

David McCreadie, Banking Managing Director of Tesco Bank, said: "We pride ourselves on consistently offering good deals to customers, and the competitive interest rate on our 1-year Fixed Rate Saver further demonstrates this commitment.

"At Tesco Bank, customers are our focus. We're delighted that our competitive rates and straightforward maturity process have been so well received, and we are extremely proud that two-thirds of existing customers reinvest in a Fixed Rate Saver."

Interest rates for new customers, effective from 8 March 2012:

Fixed Rate Saver Annual Rate*
1 year 3.25% Gross/AER
2 year 3.50% Gross/AER
3 year 3.55% Gross/AER

* Customers can choose to have their interest paid monthly or annually to a separate account of their choice. Monthly rates are available on our website.  

Gross is the interest rate paid before tax is deducted.

Annual Equivalent Rate (AER) is a notional rate which illustrates what the interest rate would be if paid and compounded each year.

Interest on this account is paid directly into a separate account of the customer's choice and is therefore not compounded.

The account allows a single deposit between a minimum of £2,000 and a maximum of £5 million that must be made within 30 days of opening.

Once a customer has put their money in they can't close the account early or get money out before the end of the term.

For more information, visit tescobank.com.