TSB Savings Pots serve as a handy means for customers to put money aside for specific events and activities, gaining interest along the way. Customers who have a Spend and Save or Spend and Save Plus account can open a pot with as little as £1, and savers can have up to five of them with a balance limit of £5,000 each.
As of September 2, TSB has increased the interest rate paid on the instant access Savings Pots in an effort to give customers’ savings a “boost”.
To get the higher interest rate, new and existing customers with a Spend and Save or Spend and Save Plus current account need to open a new Savings Pot, as the rate will only apply to pots opened on or after September 2.
Those with existing Savings Pots can transfer existing savings into a new pot.
The interest rate has been hiked from 1.25 percent to 1.52 percent for up to £25,000 of savings.
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This rate includes a fixed introductory bonus of 1.32 percent AER for the first 12 months.
After 12 months, the variable rate without bonus will apply to the pot. Interest is calculated daily and paid to customers monthly.
New customers can open a Spend and Save account online in minutes by downloading the TSB app, but customers must be over 18 and a UK resident to do so.
The Spend and Save accounts offer a number of additional features to account holders, including a £5 a month cashback for a six month period if they make 30 debit card payments that month.
BoE interest rates were raised to 1.75 percent in August, but this is only expected to increase.
Forecasts from the market predict base rates will finish the year above three percent and could peak at close to 4.1 percent in June 2023.
As these rates influence the rates offered by high street banks, Britons can expect to see more competitive rates over the coming months.
