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Tesco Bank’s improved ISAs compete

Tesco Bank’s improved ISAs compete

Category: ISAs
Date: 29/01/2018

Tesco Bank has increased selected rates by up to 0.19%, which sees its one-year ISA enter the charts, while its easy access ISA takes up a more competitive place in the Best Buys. They both earn a high Moneyfacts rating as a result.

The basics…

The one-year Fixed Rate Cash ISA now boasts a rate of 1.35%, paid on its anniversary, while Instant Access Cash ISA pays a variable rate of 1.16% on its anniversary, including a 0.51% bonus for the first 12 months. Interest must be compounded on both accounts.

The finer details…

Both accounts require a minimum initial investment of just £1 and allow transfers in only from other cash ISAs. They must be opened online or by phone, before becoming phone, internet and app-operated.

The one-year ISA allows additions for 30 days from account opening, while early access is possible on closure of the account and 90 days' loss of interest, the same interest penalty that applies to transfers out. The easy access account naturally allows additions and withdrawals, with no penalty on full transfers out. The only restriction is that online transfers have a maximum withdrawal limit of £10,000 to non-Tesco Bank accounts and a £100,000 limit to Tesco Bank accounts. Also note that due to the bonus element, it would be wise to review the ISA after the first year.

Why we like them…

The improved rates on these accounts are enough to earn them their places in the Best Buys, as well as their high rating.

Moneyfacts rating: Excellent

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 Any products featured may be withdrawn by their provider or changed at any time.

 

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 Any products featured may be withdrawn by their provider or changed at any time.

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