TSB raises interest rates on six of its saving products

Yesterday the Bank of England announced the biggest individual rise to its base interest rate in more than three decades. The base rate rose by 0.75 percentage points from 2.25 percent to three percent. After this anticipated rise, a number of banks have increased the interest rates offered on their products.TSB announced this morning that it has increased the rates to its fixed-rate bonds and ISAs.The one-year bond has increased from 3.5 percent to 4.35 percent, the two-year bond has gone for 3.75 percent to 4.76 percent, and the three-year bond has gone from 3.8 percent to 4.88 percent.The ISAs which have seen an increase include 18 Month Fixed Rate ISA, the two Year Fixed Rate ISA, and three Year Fixed Rate ISA.These have increased from three percent, to 3.75 percent, from 3.25 percent to 4.2 percent, and 3.3 percent to 4.3 percent respectively.READ MORE: Mortgage holders who are ‘worried about rates’ urged to make important check or risk fee TSB announced the interest rate rises this morning (Image: GETTY)TSB announced that the new rates would be available in branch and online from today.For the cash ISAs, the interest rate will be fixed and if someone signs up for one today the interest rate will remain the same for the entire ISA lifespan.Based on a £3,000 deposit on each account, people would gain interest of between £170 and £403 over their ISA term.Interest on the account is calculated daily and is paid yearly on the anniversary of opening the account and on maturity.DON’T MISSUniversal Credit warning as your earnings could impact the amount you get [BENEFITS]Mortgage calculator shows how much more you can expect to pay after interest rate rise [PAYMENTS INCREASE]You could avoid inheritance tax with a gift of any amount – but there’s a catch [TAX] The current Bank of England base rate is three precent (Image: EXPRESS)People can choose to have their interest paid either monthly or yearly.The criteria for opening an account are the same as the criteria for opening an ISA and they can be opened online, in branch, or over the phone.With the Bonds, TSB notes that withdrawals are not allowed once the account is opened. Early closure is only available on the death of the owner of the account.