What interest rate does the Tesco Bank 5 Year Fixed Rate Saver pay?

The Tesco Bank 5 Year Fixed Rate Saver pays 4.85% AER, fixed for 5 years.

How much interest could I earn?

Saving £10,000 for 5 years would earn about £2,672 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.

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 five-year fixed rate bonds?

At 4.85% AER it ranks 15th of 38 five-year fixed rate bonds we track. The best pays 5.35% and the average is 4.74%.

Dashboard

Fixed Rate

Tesco Bank 5 Year Fixed Rate Saver Review

A competitive five-year fixed rate bond from Tesco Bank, with a £2,000 minimum deposit. It ranks 15th of 38 five-year fixed rate bonds we track.

Rate checked Oct 2026Got this account? Leave a review

Fixed rate · 5 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 15th of 38

5-year fixed bonds we track

Above average

This account 4.85%

UK CPI (Aug 2026): 3.10%; Pays 1.75% more
Average 5-year fixed: 4.74%; Pays 0.11% more
Best 5-year fixed: 5.35%; Pays 0.50% 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: Savers who want a monthly income

Worth Weighing Up

Con: Your money is locked in for 5 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 5 Year Fixed Rate Saver.

Estimated interest

£5,000 saved

£1,336

At 4.85% AER

£10,000 saved

£2,672

At 4.85% AER

£50,000 saved

£13,360

At 4.85% AER

Estimated over the 60-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 5 Year Fixed Rate Saver

Jonny PeaseCo-Founder, DepositScout

Tesco Bank's 5 Year Fixed Rate Saver pays 4.85% AER (or 4.75% if you take interest monthly), which sits below the market average for fixed-rate savings and 0.50% behind the current market leader at 5.35%. That said, 4.85% still beats CPI inflation by 1.75 percentage points, so your money does grow in real terms. The obvious catch is that you need at least £2,000 and cannot touch the money for five years, so I would check Chetwood Bank's 5 Year Fixed Rate Savings at 5.20% before committing here.

Compare Fixed Rate Bonds