TSB becomes the latest high street bank to boost savings rates adding more pressure on other big names to follow suit
- TSB’s fixed rate accounts now offering up to 2.5%
- Its regular savings deal also upped to 2.5%
- Its easy-access deal remains at 0.25% – far below the market leading deal
TSB has become the latest high street bank to boost rates across a range of its savings products, following on from Santander earlier in the week.
The bank, which has more than 200 branches across Britain, has upped its fixed rate bonds to as high as 2.5 per cent as well as boosting three of its cash Isa deals.
TSB hiked its one-year fix rate from 0.81 to 2 per cent, its two-year deal will now pay 2.2 per cent instead of 1 per cent, while its three-year deal has risen from 1.1 per cent to 2.5 per cent.
Big bank boost: TSB has today announced changes to the rates for a number of its savings products
None of these deals are among the best on the market but they are far better than what all other high street banks are offering at present.
It follows Santander, which on Monday, also upped rates across a range of fixed rate and easy-access products.
TSB’s announcement today will be viewed by some as a sign that big banks are beginning to fight for savers cash by upping rates.
James Blower, founder of the Savings Guru said: ‘These moves could be a sign that competitive pressures are driving them with savers responding to the market increases and shopping around.
‘It will be interesting to see if it prompts some of the big four to follow suit and move too.’
Other notable savings products to be upped by TSB today, include its monthly regular savings deal that will now pay 2.5 per cent rather than 2 per cent. Its fixed rate cash Isa deals have also increased.
However, both its popular easy-access accounts will remain at 0.25 per cent, albeit this is still better than the majority of the other big names.
Santander, which is home to 5.4m UK customers, has also announced new and improved deals on a range of fixed bonds, easy-access and Isa accounts
How does TSB compare?
In terms of fixed rate deals, TSB falls well short of the best rates on the market.
The best one-year deal, currently offered by Cynergy Bank pays 2.72 per cent compared to TSB’s 2 per cent.
However, when compared to its high-street competitors, TSB is very much leads the pack.
For example, NatWest and RBS pay just 0.4 per cent on its one year fixed deal while HSBC pays 0.45 per cent.
|Provider||One-year fixed rate||Two-year fixed rate|
In terms of easy-access savings, TSB’s decision to leave its rate at 0.25 per cent may well be due to the derisory rates on offer at other big names.
Only Santander beats it with a 0.75 per cent, whilst Halifax matches it at 0.25 per cent.
Most high street banks pay much less – Barclays being the worst offender, paying just 0.01 per cent to its easy-access savers.
|Provider||Best Easy-access rate|
In terms of the rest of the market it’s easy-access rate remains roughly six times lower than the best paying deals.
Chase Bank’s easy access linked saver pays 1.5 per cent on balances up to £250,000 whilst Virgin Money pays 1.56 per cent on balances up to £25,000, albeit you’ll need to have a current account with either bank to be eligible.
Meanwhile Al Rayan Bank currently pays 1.45 per cent on its easy-access deal whilst a number of providers also pay 1.4 per cent.
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