Tesco Bank has made reductions to the rates of selected savings accounts but its easy access deal and one-year fixed rate ISA have kept their competitive edge and retained places in the Moneyfacts charts.
Internet Saver now has a yearly rate of 1.35% including a 12-month bonus of 0.60%. This allows it to sit just behind the market-leader of its sector.
Meanwhile, the one-year Fixed Rate Cash ISA pays 1.50% per annum, enabling it to rest comfortably among the top 10 of its sector.
The finer details…
As the name suggests, the Internet Saver account must be opened and operated online with an initial investment of at least £1, although closure of the account and withdrawals of over £10,000 must be made by phone. Savers are able to make unlimited, penalty-free withdrawals from this account with no notice required. Further additions are also welcomed.
The ISA also requires a minimum investment of £1 but can be opened and managed by both phone and online. Further additions are permitted provided they are made within 30 days of the account opening. Transfers in of cash and stocks & shares ISAs are welcomed, too. Unusually for a fixed rate account, this deal allows early access to funds, albeit on closure of the account and the loss of 30 days' interest. Transfers away from this account are also subject to this penalty.
Why we like them…
Although these accounts have had a slight rate reduction, they remain highly competitive and have kept their top 10 places. As a result, these deals are likely to continue to appeal to savers who are looking for flexible savings accounts. However, the Internet Saver rate does include a 12-month bonus, which means that savers must be prepared to re-evaluate the account's competitiveness in a year's time.
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 Any products featured may be withdrawn by their provider or changed at any time.
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