TSB increases interest on eight savings accounts with rates up to 5%

TSB increases interest on eight savings accounts with ‘competitive’ rates up to 5% (Image: Getty) TSB has increased interest on eight different savings accounts with rates reaching as high as five percent. The products included in the raft of interest rate rises are TSB’s one, two and three-year fixed-rate savings accounts, as well as its 18-month, two-year and three-year fixed-rate ISAs . Two of TSB’s limited access accounts now also offer savers as much as 0.5 percent higher returns, with interest rates of 3.5 percent, up from three percent for those who need instant access to their cash. Peter Hatton, head of savings, TSB said: ‘We are always looking to support our customers with competitive products and services that help them manage and grow their money – and today’s rate increases will provide another boost to their savings.’ Here’s a rundown of the different savings accounts with new and improved interest rates. TSB has boosted interest rates across its limited access, fixed-term savings, and ISA range (Image: Getty) TSB One Year Fixed Rate Bond – 4.75 percent TSB’s One Year Fixed Rate Bond is now offering savers an Annual Equivalent Rate (AER) of 4.75 percent, up from 4.05 percent. The account can be opened with a minimum deposit of £1 and interest is calculated each day. People can choose to have interest paid monthly or once a year on the anniversary of opening the account. Withdrawals are not permitted throughout the term and early closure is also not allowed except in the event of death. Savers can launch the account in a branch or online and must be UK residents aged 16 or over. TSB Two Year Fixed Rate Bond – 4.85 percent TSB’s Two Year Fixed Rate Bond is now offering savers an AER of 4.85 percent, up from 4.15 percent. Similar rules apply – the account be opened with a minimum deposit of £1 and interest can be paid either monthly or annually. Withdrawals and early closures are not permitted, meaning savers should be comfortable investing their money without touching it until the account matures. The ISA allowance for the 2023/24 tax year is £20,000 (Image: EXPRESS) TSB Three Year Fixed Rate Bond – five percent TSB’s Two Year Fixed Rate Bond is now offering savers an AER of five percent, up from 4.20 percent. The account can be opened with a minimum deposit of £1, interest can be paid monthly or annually, and withdrawals and early closures are not permitted. TSB 18-Month Fixed Rate ISA – 4.5 percent TSB’s 18-Month Fixed Rate ISA is now offering savers an AER of 4.5 percent up from 3.8 percent. The account can be launched with a minimum deposit of £1 and interest is calculated daily and paid monthly and at maturity. Savers must be UK residents aged 16 or over and withdrawals will be subject to a charge equivalent to 135 days’ interest on the amount taken out. TSB Two Year Fixed Rate ISA – 4.6 percent TSB’s Two Fixed Rate ISA is now offering savers an AER of 4.6 percent up from four percent. The account can be launched with a minimum deposit of £1 and interest is calculated daily and paid monthly and at maturity. Savers must be UK residents aged 16 or over and withdrawals will be subject to a charge equivalent to 180 days’ interest on the amount taken out. TSB Three Year Fixed Rate ISA – 4.75 percent TSB’s Three Fixed Rate ISA is now offering savers an AER of 4.75 percent up from four percent. The account can be launched with a minimum deposit of £1 and interest is calculated daily and paid monthly and at maturity. Savers must be UK residents aged 16 or over and withdrawals will be subject to a charge equivalent to 270 days’ interest on the amount taken out. TSB Spend Well Limited Access Account and ISA – 3.5 percent TSB’s Save Well Limited Access accounts are instant access products that reward savers with a higher rate of interest on the months they don’t dip into their funds. Interest rates on both TSB’s Save Well Limited Access Account and ISA have been raised from three percent up to 3.5 percent. The Spend Well accounts can be opened with a minimum deposit of £1 and interest is paid on the 1st of every month. Withdrawals are permitted, however, the interest rate will drop to 0.25 percent AER for the full calendar month in which this takes place.