Tesco Bank has reviewed its saving rates and boosted them by up to 0.10%. Its instant access cash ISA has also benefited, with a 0.20% increase. This boost has put the five-year bond into the top 10 of the Moneyfacts charts.
The one-year Fixed Rate Saver is now paying 1.75% yearly (1.74% monthly) while the two-year version pays 2.10% annually (2.08% monthly). The three-year account now has a boosted yearly rate of 2.40% and the five-year account has an annual rate of 3.10% (3.06% monthly).
Meanwhile, Instant Access Cash ISA has seen its rates increase to 1.45% yearly, with a 0.20% bonus for 12 months.
The fixed accounts require a minimum investment of £2,000. Like many other fixed rate accounts, early access is not permitted. Further additions are also not welcomed, so investors must be completely happy with the amount of money invested and the term from the beginning.
The instant access ISA needs an initial investment of £1,000, which can be added to with further deposits. Transfers in from cash and stocks & shares ISAs are also possible. No notice is required to access funds and there are no limits on the number or size of withdrawals. A review of the account in a year's time is a must due to the initial bonus rate in place.
All accounts can be opened and operated over the phone and online.
The five-year account is now paying a handsome rate, which is sure to appeal to investors hungry for a return. Although the account lacks the flexibility of early access, it does offer a monthly option, so it is likely to prove very attractive to savers.
Four Moneyfacts Stars have been awarded.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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