Tesco Bank savings accounts

What is Tesco Bank?

Tesco Bank is the financial services arm of Tesco, the UK’s largest supermarket chain. Originally launched in 1997, it was created to bring the convenience and value shoppers expect from Tesco into everyday banking. Today, Tesco Bank offers a range of products, from credit cards and insurance to savings accounts.

What types of savings accounts does Tesco Bank offer?

Tesco Bank provides a variety of savings options, including easy access, fixed-rate savings, and cash ISAs.

Internet saver

• Start saving with just £1

• Variable interest rate with a bonus rate for the first 12 months

• Easy access to your money 24/7 online or via the mobile app

Fixed rate saver

• Choose a fixed term between one and five years

• Deposit at least £2,000 within 30 days of opening

• No withdrawals allowed during the term

• Interest is paid monthly or annually to a separate account

Instant access cash ISA

• Tax-free savings with a variable interest rate

• Includes a bonus rate for 12 months

• Save up to £20,000 tax-free each year

• Transfer-in existing ISA balances from other providers

Fixed rate cash ISA (one year)

• Fixed interest rate for 12 months

• Deposit up to £20,000 within 30 days of opening

• No withdrawals allowed unless you close the account, which incurs a fee

• Transfers from other ISAs are accepted

Junior cash ISA

• Save for a child’s future with a variable interest rate

• Maximum tax-free contribution of £9,000 per tax year

• No withdrawals allowed until the child turns 18

• Transfers from other Junior ISAs are permitted

Are there any fees or restrictions?

The following fees and restrictions apply to Tesco Bank savings accounts:

• Internet saver: Bonus interest rate applies only for the first 12 months on balances up to £1 million. Interest rate drops after the first year

• Fixed rate saver: No withdrawals permitted until the term ends. Minimum deposit of £2,000 required. No additional deposits allowed after 30 days from account opening

• Instant access cash ISA: No restrictions on withdrawals, and funds can be replaced within the same tax year without affecting your allowance. If you exceed the £20,000 annual limit, you won’t be able to add more tax-free funds until the next tax year. Bonus interest rate applies for 12 months only

• Fixed rate cash ISA: No withdrawals allowed. To access funds, you must close the account and you’ll be charged a fee equal to 90 days' interest on the balance of your account. You must deposit your full contribution within the first 30 days

• Junior Cash ISA: Once money is deposited, it cannot be withdrawn until the child turns 18. The child owns the savings, and control transfers to them at 16, though they can only withdraw the money at 18.

How can I access my savings?

Most Tesco Bank savings accounts can be managed online or through the Tesco Bank mobile banking app. The internet saver and instant access cash ISA allow 24/7 access to funds.

However, fixed rate savers and fixed rate cash ISAs do not permit withdrawals during the term.

Can I transfer money from an existing cash ISA?

Yes, Tesco Bank allows transfers from other providers into both its instant access cash ISA and fixed rate cash ISA. However, always check with your existing provider for any exit fees before transferring.

Is there a mobile app for Tesco savings accounts?

Yes, Tesco Bank offers a mobile banking app, which lets you manage your savings, check balances, and transfer money with ease. This is available for both iOS and Android devices.

Can I get a joint savings account with Tesco Bank?

Tesco Bank only allows joint savings accounts for its non-ISA products, including both the internet saver and fixed rate saver. This means two people can save together in the same account, with both account holders having equal access and responsibility. Joint accounts can be a useful option for couples, family members, or anyone who wants to manage shared savings in one place.

Does having a Tesco Clubcard give me a better savings rate with Tesco Bank?

No, having a Tesco Clubcard does not currently give you a better savings rate with Tesco Bank.

While Clubcard members can earn points on certain Tesco Bank products, such as credit cards and insurance, savings account interest rates remain the same for all customers.

Is Tesco Bank regulated and safe?

Yes, Tesco Bank is authorised by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).

Deposits are protected up to £120,000 per person under the Financial Services Compensation Scheme (FSCS), meaning your money is safe even if Tesco Bank faces financial difficulties.

With Tesco being acquired by Barclays in November 2024, the bank now comes under the Barclays banking licence meaning that savings in Tesco and Barclays are combined under the £120,000 threshold.

How do I open a Tesco Bank savings account?

Opening a Tesco Bank savings account is simple and can be done online:

1. Check eligibility: You must be 18 or over (or under 18 for a Junior ISA) and a UK resident.

2. Choose an account: Decide whether you want an instant access, fixed-term, or ISA account.

3. Apply online: Visit the Tesco Bank website, provide your personal details, and link a UK current account.

4. Fund your account: Depending on the account, deposit at least £1 (internet saver) or £2,000 (fixed rate saver) within the required timeframe.

5. Start saving: Manage your savings online or through the mobile app.

Why compare savings accounts?

Using MoneySuperMarket to compare savings accounts helps you get the most out of your money. We review a wide range of accounts, highlighting important details like interest rates and any notice periods for withdrawals.

Once you’ve found the right option, simply follow the link to apply online in just a few minutes.