Strong savings rates have been hard to come by over the past 18 months, mainly due to the impact of the Bank of England lowering its base rate to 0.1% in March 2020. However, things are starting to improve for savings accounts, prompting people to put money aside again. The latest offer in this regard comes from TSB which is raising its interest rate as competition begins to intensify between providers.
It doubled the interest rate on the monthly saver from 1% to 2%, with customers able to save up to £ 125 per month.
TSB explains, “The Monthly Saver account helps customers get into the habit of saving, giving them access to their account when 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 create a savings habit with this account as they can save 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 give TSB customers a competitive savings account.
Peter Hatton, TSB’s Head of Savings, commented on the update and said: “At TSB, we know that many of our customers want to save.
“We want to help them reach their savings goals. This is why we are doubling the rate on our Monthly Saver account.
People will be able to easily manage their Monthly Saver account online through TSB’s mobile app and online banking – a major draw for modern savings.
However, there are eligibility criteria that a person should keep in mind if they want to open this account.
First, people must have a TSB current account in order to benefit from this discounted interest rate offer.
They must also be aged 16 and over and reside in the UK to be eligible.
Individuals need to set up a monthly standing order between £ 25 and up to £ 250 from a TSB checking account for that account. They can only make one payment per month to your account.
However, there is no maximum limit on the amount that can be held in the TSB Monthly Savings.
Accounts can be held in a single or joint name, but there is only one account per client that is authorized.
Individuals will be able to close their account free of charge at any time.