Tesco Bank has unveiled its first savings account as a standalone bank since buying out the RBS share of the firm in 2008. The new account will offer rates of 2.9% for customers who deposit their savings for a year and 3.5% for those who deposit their savings for a two year period.
The minimum and maximum deposits are £2000 and £1 million respectively and interest will be accrued as soon as a deposit is made. The interest will be paid monthly, annually or on maturity into a separate account of the customer’s choosing. Account holders will not be able to get their money back or close their accounts until the term is complete.
Chief executive of Tesco Bank Benny Higgins 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 minimum deposit of £2,000, which can be transferred immediately by debit card”.
He continued: “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“.
Earlier this week the supermarket giant announced a sharp rise in profits – pre-tax profit was up by an astonishing 92% hitting figures beyond £100 million. It also showed an 11% rise in the take up of personal loans and opened 200,000 new customer accounts in the first half of the year.