What interest rate does the Tesco Bank 3 Year Fixed Rate Saver pay?

The Tesco Bank 3 Year Fixed Rate Saver pays 4.85% AER, fixed for 3 years.

How much interest could I earn?

Saving £10,000 for 3 years would earn about £1,527 at 4.85% AER. This assumes the rate stays the same and interest stays in the account.

How much can I pay in?

You can deposit at least £2,000.

Can I withdraw my money?

No. Your money is locked in until the fixed term ends, so only put in what you won't need before then.

When is interest paid?

You can choose to have interest paid monthly, annually or on each anniversary of opening.

Who can open this account?

New and existing Tesco Bank customers can open it.

Is my money protected?

Yes. Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking licence.

How does it compare with other three-year fixed rate bonds?

At 4.85% AER it ranks 16th of 46 three-year fixed rate bonds we track. The best pays 5.18% and the average is 4.66%.

Dashboard

Fixed Rate

Tesco Bank 3 Year Fixed Rate Saver Review

A competitive three-year fixed rate bond from Tesco Bank, with a £2,000 minimum deposit. It ranks 16th of 46 three-year fixed rate bonds we track.

Rate checked Oct 2026Got this account? Leave a review

Fixed rate · 3 years

4.85%AER

Rate checked Oct 2026Got this account? Leave a review

Protection

FSCS£120,000

Min balance

£2,000

Max balance

No limit

Access

At maturity only

Interest paid

Monthly/Annually/Anniversary

How It Stacks Up

Ranks 16th of 46

3-year fixed bonds we track

Above average

This account 4.85%

UK CPI (Aug 2026): 3.10%; Pays 1.75% more
Average 3-year fixed: 4.66%; Pays 0.19% more
Best 3-year fixed: 5.18%; Pays 0.33% less

Inflation: ONS. Averages and best rates: accounts on DepositScout.

Compare fixed bonds

How Interest Is Paid

You choose how often interest is paid: annually or monthly. You earn the same 4.85% AER either way.

Paid annually

4.85%AER

Paid monthly

4.75%gross

The monthly rate is a little lower because interest reaches you sooner. Over a year it adds up to the same.

A Good Fit For

Pro: New and existing savers
Pro: Savers who want a monthly income

Worth Weighing Up

Con: Your money is locked in for 3 years
Con: You need at least £2,000 to open it

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Estimated returns with Tesco Bank's Fixed Rate

What you could earn with Tesco Bank's 3 Year Fixed Rate Saver.

Estimated interest

£5,000 saved

£763

At 4.85% AER

£10,000 saved

£1,527

At 4.85% AER

£50,000 saved

£7,634

At 4.85% AER

Estimated over the 36-month term, if the rate stays the same and interest is left in. Amounts outside the account's minimum or maximum aren't shown.

Work out the tax on your interestSee how much of this interest could be taxed.

Our Expert Opinion on Tesco Bank 3 Year Fixed Rate Saver

Jan WatermannCo-Founder, DepositScout

Tesco Bank's 3 Year Fixed Rate Saver pays 4.85% AER if you take interest annually, dropping to 4.75% if you prefer monthly payments, and you need at least £2,000 to open it. That rate sits 0.50% below the fixed-rate market leader at 5.35%, and the position is below the market average, so this is not where the best three-year rates are. The money is locked until maturity with no access, which is the main catch. Kent Reliance's 3 Year Fixed Rate Bond at 4.96% is worth a look if you want to stay in the same term.

Compare Fixed Rate Bonds