Solid savings rates have been hard to come by in the last 18 months, primarily due to the impact of the Bank of England lowering its base rate to 0.1 percent in March 2020. However, things are beginning to look up for savings accounts, incentivising people to put money away once again. The latest offer in this regard is from TSB which is increasing its interest rate as competition begins to heat up amongst providers.
It has doubled the interest rate on the Monthly Saver from one percent to two percent with customers able to save a maximum of £125 per month.
TSB explains: “The Monthly Saver account helps customers get into the savings habit, giving them access to their account whenever they need it, but also allowing them to save and earn interest along the way.
“The monthly saver is available to new and existing TSB customers who have a current account with TSB.”
Customers will be able to build up a savings habit with this account as they can save anywhere between £25 and £125 per month.
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The new rate coupled with the ability to save up to £125 per month will provide TSB’s customers with a competitive savings account.
Peter Hatton, TSB Head of Savings, commented on the update, and said: “At TSB we know that many of our customers are keen to save.
“We want to help them achieve their savings goals. That’s why we’re doubling the rate of our Monthly Saver account.”
People will be able to easily manage their Monthly Saver account online through TSB’s mobile app and internet banking – a major draw for modern savings.
However, there are eligibility criteria that a person must bear in mind if they wish to open this account.
Primarily, people must be a TSB current account holder in order to benefit from this updated interest rate offer.
They must also be aged 16 and over as well as being a UK resident to be eligible.
People must set up a monthly standing order between £25 and up to £250 from a TSB current account for this account. They can only make one payment each month into your account.
There is, however, no maximum limit on the amount that can be held within the TSB Monthly Saver.
Accounts can be held in sole or joint names, but there is only one account per customer which is allowed.
Individuals will be able to close their account without charge at any time.