Tesco Bank savings rates — compare every account, plus switch offers and guides

Who they are

Tesco Bank is a British retail banking brand operating as a trading name of Barclays. It was launched in July 1997 as part of a 50:50 joint venture between The Royal Bank of Scotland and Tesco, the largest supermarket in the United Kingdom. In July 2008, Tesco bought out Royal Bank of Scotland's 50% stake for £950 million, and the bank was renamed Tesco Bank in October 2009. In November 2024, the company's banking business was transferred to Barclays Bank UK PLC, which continues to operate the existing banking products under the Tesco Bank brand through a partnership agreement with Tesco. Day-to-day management of savings accounts is unchanged - the Tesco Bank name, app, and website all remain in place.

Savings accounts

Tesco Bank keeps things straightforward with a solid range covering easy access, fixed-rate bonds, and cash ISAs.

On the flexible side, the Internet Saver pays 4.21% AER and can be opened with just £1. Worth knowing: that rate includes a 3.16% bonus for the first 12 months, sitting on top of a 1.05% base rate. Once the bonus period ends, the rate drops significantly, so it is worth reviewing. The Instant Access Cash ISA works similarly - 4.20% AER with a 3.15% bonus for 12 months over the same 1.05% base.

If you are happy to lock money away, the fixed-rate options are more competitive. The 2 Year Fixed Rate Saver leads the range at 4.65% AER, with a minimum balance of £2,000. The 1 Year, 15 Month, 18 Month, 3 Year, and 5 Year Fixed Rate Savers all sit at 4.50% AER. The Fixed Rate Cash ISA offers 4.40% AER with no minimum balance - a lower bar to entry than the non-ISA fixed products.

FSCS protection - a key thing to check

All accounts listed carry FSCS protection up to £120,000. However, there is an important wrinkle here. If you have savings with both Tesco Bank and Barclays, they both now come under the same banking licence, meaning they share FSCS protection. This limit is applied to the total of any deposits you have with Barclays, Barclays Business Banking, Barclays Premier Banking, Barclays Wealth Management, and Tesco Bank. So if you already save with any Barclays brand, your combined balance with Tesco Bank counts towards a single £120,000 limit - not separate ones.

Is it right for you?

Tesco Bank suits savers who want a familiar, easy-to-use online account with a reasonable range of terms to choose from. The easy access rates are decent but rely heavily on a time-limited bonus, so they reward savers who stay attentive rather than those who set and forget. The fixed-rate bonds are more straightforward and competitive, particularly at the two-year mark.

The Tesco Bank app has a rating of 4.8 out of 5 from around 300,000 reviews on the App Store, which suggests iOS users in particular find it reliable for day-to-day account management.

The shared Barclays banking licence is the one thing larger savers should think about carefully before committing a big sum. If you hold significant deposits across both brands, it may be worth spreading some savings elsewhere.

As always, the live rates shown on this page are the most up-to-date figures - check them before you apply, as rates can change at any time.