Personal Finance Bank accounts

Tesco Bank interest rates on savings accounts

Gert Svaiko

30.05.25 (last updated)

Read time 3 minutes

Tesco Bank®¹ is the financial service arm of retail giant Tesco. Along with credit cards, loans and insurance, it also offers a number of savings accounts.

If you’re interested in building your savings with Tesco, read on. In this handy guide, we’ll run through all of the Tesco Bank interest rates for different savings products, plus info on the minimum deposit requirements and access options.

We’ll also show you a smart, alternative way to make your money work harder. With Wise Interest**, you can help your money grow by investing in a fund that holds government-guaranteed assets - all within your Wise account from the money services provider Wise. It’s not a bank account but offers some similar features, and your money is safeguarded.

Learn more about Wise Interest

Capital at risk. Growth not guaranteed.

Tesco Bank savings accounts options

Tesco’s savings accounts are split into several different categories. Here are your options:¹

Internet Saver account - an instant access account with a minimum deposit of just £1, with a variable interest rate which includes bonus interest for the first 12 months.
Instant Access Cash ISA - an instant access ISA account with a minimum deposit of just £1, with a variable interest rate which includes bonus interest for the first 12 months. Limits apply as this is a tax-free saving option.
Junior Cash ISA - this is aimed at parents and relatives saving for their children. You can save from £1, in an account that can only be accessed once the child turns 18.
Fixed Rate Saver - lock your money away for between 1 and 5 years, in return for a preferential interest rate. Minimum deposits of 2,000 GBP apply, and you can’t get your money back within the agreed term without penalty.
Fixed Rate Cash ISA - lock your money away for 1 year, in return for tax-free interest and a preferential interest rate. You can’t get your money back within the agreed term without penalty.

Tesco Bank interest rates on savings accounts

The interest rates you get vary depending on the specific product you want to open.

At the time of writing (12th May 2025), Tesco Bank interest rates on savings accounts are as follows:

Product	Interest rate	Minimum deposit	Instant access to your money?
Internet Saver¹	4.10% Gross/AER (variable) for 12 months 1.15% Gross/AER (variable) after that	£1	Yes
Instant Access Cash ISA¹	3.95% Gross/AER (variable) for 12 months 1.15% Gross/AER (variable) after that	£1	Yes
Junior Cash ISA¹	3.50% Gross/AER	£1	No
Fixed Rate Saver: 1 Year²	4.15% Gross/AER fixed	£2,000	No
Fixed Rate Saver: 15 Months²	4.15% Gross/AER fixed	£2,000	No
Fixed Rate Saver: 18 Months²	4% Gross/AER fixed	£2,000	No
Fixed Rate Saver: 2 Year²	3.95% Gross/AER fixed	£2,000	No
Fixed Rate Saver: 3 Year²	3.90% Gross/AER fixed	£2,000	No
Fixed Rate Saver: 5 Year²	3.80% Gross/AER fixed	£2,000	No
Fixed Rate Cash ISA: 1 Year¹	4.05% Gross/AER fixed	£1	No

If you’re locking your money into a fixed rate account, the interest rate is fixed as long as you leave your funds for the agreed term.

If you hold your money in an account with a variable interest rate, the interest applied can vary depending on market conditions and the bank’s own policies. You’ll always be notified if your rate is about to change.

These rates are correct at the time of writing - 12th May 2025 - but make sure to double-check the live rate before you make a deposit.

What is Tesco Bank?

Tesco Bank is part of Tesco Personal Finance PLC, and the broader Tesco retail group you’ll know from your local high street.

It offers a pretty good range of products for personal customers, including ways to manage your travel money, spend on credit cards, insure your home, pets or more. And of course, it has a selection of savings accounts.

Tesco Bank is FSCS protected, and overseen by the Financial Conduct Authority (FCA) in the UK. That means it’s a safe provider to use, and your money is protected to the legal maximums allowed in the unlikely event that Tesco were to run into financial trouble.

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Earn a return with Wise Interest

A bank account isn’t the only way to manage – or grow – your money.

The Wise account is a fantastic alternative if you send money abroad, convert between currencies, or need an easy way to spend overseas. It’s not a bank account but offers some similar features.

You can also switch on Wise Interest** which lets you earn a variable return of up to 3.74%*** on your GBP balance. Unlike a typical savings account, your money is put to work by investing in a fund that holds government-guaranteed assets. It’s an effortless way to help your money grow while still enjoying the flexibility of Wise at home or abroad.

Here’s an overview of the main benefits of using Wise:
Fast and easy setup with no physical paperwork Low, upfront, transparent fees* and the mid-market exchange rates Dedicated support for large transfers Sophisticated security and anti-fraud measures, with your money safeguarded under regulatory protections Trackable and fast transfers to countries Low-cost spending in countries with the Wise card Earn a return on your GBP, USD and EUR balance with Wise Interest**

Here’s an overview of the main benefits of using Wise:

Fast and easy setup with no physical paperwork
Low, upfront, transparent fees* and the mid-market exchange rates
Dedicated support for large transfers
Sophisticated security and anti-fraud measures, with your money safeguarded under regulatory protections
Trackable and fast transfers to countries
Low-cost spending in countries with the Wise card
Earn a return on your GBP, USD and EUR balance with Wise Interest**

**Capital at risk. In the UK, Interest and Stocks are provided by Wise Assets — this is the trading name of Wise Assets UK Ltd, a subsidiary of Wise. Wise Assets UK Ltd is authorised as an investment firm and regulated by the Financial Conduct Authority (FCA). Our FCA number is 839689. We do not give investment advice, and you may be subject to pay tax. If you're not sure, seek qualified advice. You can find more information about the funds on our website.

***Capital at risk - past performance does not guarantee future growth. Variable rate is based on 7 day performance as of 14/05/2025. This fund has returned an 1.31% annual average over the last 5 years, excluding Wise fees. For the full 5 year past performance of funds, please visit our website.

Sources used:

Tesco Bank - Savings
Tesco Bank - Fixed Rate Saver

Sources last checked on date: 12-May-2025

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.