Tesco Bank fixed rate saver account

Tesco Bank has launched a new savings product, offering a competitive rate of return for a fixed term deposit of one or two years.

This is the first product 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 Tesco Bank Fixed Rate Saver pays 2.95% Gross/AER for customers who deposit their savings for a year and 3.50% Gross/AER if they deposit their savings for two years. Once customers have put their money into the account, they cannot close the account or get their money until the end of the term.

The new product offers customers a simple way of saving and is easy to set up. Accounts can be opened by phone in minutes and the one off deposit can be transferred immediately by debit card, with a wide range of other funding options available. The account has a low minimum deposit of £2,000 with a maximum deposit of £1 million and, once the account has been funded, it will start earning interest immediately. Customers can opt to have their interest paid monthly, annually or on maturity to a separate account of their choice.

Benny Higgins, Chief Executive of Tesco Bank, said: "The Tesco Bank Fixed Rate Saver offers a great rate of interest for customers who want to put money away for one or two years and is simple to open.  We know this is important to customers who will be able to open an account over the phone with a low minimum deposit of £2,000, which can be transferred immediately by debit card. The Tesco Bank Fixed Rate Saver is a great addition to our product range and we look forward to offering customers even more choice as our business develops."