TSB increases interest rates and launches £200 switch offer

The bank has increased the rate on its Savings Pots to 2.52 percent while the interest rate for its Monthly Saver has gone up to five percent, fixed for 12 months. From next month, customers switching to a TSB account will also receive up to £200.

Customers who open a TSB Spend & Save Plus account will also earn a further £60 cashback.

The £200 switching offer will be paid in two instalments. Customers will get £125 cashback if they apply to open an account by March 3, 2023, as long as they switch to TSB using the Current Account Switch Service by March 24. 

To do this, a person will need to set up at least two direct debits and use their debit card at least once. They must also log into Internet Banking or the TSB Mobile Banking app. They will then receive this first instalment paid into their account by April 21.

A further £75 will be paid into accounts by October 31 as long as a customer meets certain conditions.

READ MORE: Thousands may be ‘penalised in retirement’ after introduction of Child Benefit tax charge

These include keeping the account open and paying in at least £500, making five debit card payments and two direct debits.

Customers can get £5 a month cashback for the first six months with a Spend & Save account.

Those with a Spend & Save Plus account can get the same cashback each month on an ongoing basis, which is £60 a year if a person receives the cashback every month.   

TSB has reduced the number of debit card payments a person must make to earn their cashback, from 30 to 20 each month.


Ian Ramsden, products director at TSB, said: “Our current accounts provide convenient ways to help you manage your money better and this offer, alongside our increased savings rates, is another great reason to make the switch.”

Interest for Spend & Save, Spend & Save Plus and Savings Pots is paid monthly. A person can have five Savings Pots for each savings account.

Each Savings Pot is designed to help a person put aside money towards a particular goal, such as paying for a holiday.

The base interest rate is currently 3.5 percent with many analysts predicting the Bank of England will continue to increase the rate in efforts to tackle soaring inflation.

READ MORE: Thousands of Universal Credit claimants hit by rule change from today

The Monetary Policy Committee of the central bank is meeting this week to discuss changing the base rate.

Laith Khalaf, head of investment analysis at AJ Bell, said current trends such as falling gas prices might make the central bank less inclined to push rates up “too much”.

He added: “Markets are currently expecting interest rates to peak at 4.5 percent in 2023, which looks a reasonable estimate as things stand at the moment.

“This is notably lower than the 5.25 percent peak anticipated when the Bank last produced a full economic report in November 2022 and shows how significantly expectations have shifted.”

Martin Lewis spoke about the projected interest rates hike on a recent episode of his ITV Money Show.

He said: “While easy access rates move with the Bank of England Base Rate – we’d expect to see those rise, fixed rates move with gilts or the long-term predictions of interest rates.

“Because things have calmed down since last September’s budget, long-term interest rates are now predicted to be lower.

“Actually, at the last Bank of England announcement, while it put rates up, they forecast future interest rates to be lower and we didn’t see any increase in fixed savings rates at all.

“You shouldn’t see it as a done deal that if the Bank of England puts rates up, fixes will go up. Therefore, I don’t think it’s such a big deal to lock away now.”

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TheDailyCheck is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] The content will be deleted within 24 hours.