TSB current accounts guide
With 631 high street branches, TSB promises to focus on “local banking” that serves its individual and local business customers. Most of its customers were switched across automatically from Lloyds and Cheltenham & Gloucester last year.
The bank, which offers three main current accounts, is to be listed on the stock market later in 2014.
What types of current account does TSB provide?
TSB’s newest account is its Plus account that pays a massive 5.00% on balances of up to £2,000 indefinitely, and requires monthly funding of just £500.
The bank’s standard current account is the Classic account, which is free of charge and offers internet banking, telephone banking and mobile banking.
Customers who use internet banking can also use the Money Planner service to keep track of all their current and credit card accounts with the bank.
For customers who remain in credit, one benefit of the Classic account is that they qualify for Enhance, which offers some competitive interest rates.
You must pay in at least £1,000 a month to qualify for Enhance. And if you do, you will receive 1.50% on balances of between £1 and £1,000, 2% on between £1,000 and £3,000 and 3% on between £3,000 and £5,000.
The account also offers a £10 overdraft buffer as standard, while those who go into the red without authorisation can avoid fees by paying in the amount needed to take them back above £0 by 3.30pm that day.
If you get authorisation from the bank, you also pay nothing on the first £25 of overdraft. However, the AER rate charged on larger amounts and unauthorised borrowing is 19.94%.
You can avoid being hit with this charge by signing up to the bank’s Control feature, which prevents you going overdrawn by mistake and means you will also avoid Returned Item Fees.
TSB also offers Added Value accounts that include benefits such as travel insurance, breakdown cover and mobile phone insurance.
The Silver account comes with these features, plus a £50 fee-free authorised overdraft facility, and costs £9.95 a month.
The Platinum account is at £17 a month and includes more comprehensive insurance and a fee-free overdraft of up to £300.
Comparing current accounts
Current accounts have improved a lot over recent years, so it is important to consider whether your existing account is your best option.
Whether you are looking for added benefits, in-credit interest or a cheap overdraft, you can browse hundreds of accounts on MoneySuperMarket to find your perfect match.