TSB money boxes serve as a convenient way for customers to set aside money for specific events and activities, while also raising interest. Customers who have a Spend and Save or Spend and Save Plus account can open a pot from as little as £1, and savers can have up to five of them with a balance limit of £5,000 each.
Starting September 2nd, TSB has increased the interest rate on the instant access savings pots to give customers a “boost” to their savings.
To receive the higher interest rate, new and existing customers with a Spend and Save or Spend and Save Plus checking account must open a new savings pot, as the interest rate only applies to pots opened on or after September 2nd.
Those with existing savings pots can transfer existing savings into a new pot.
The interest rate has been raised from 1.25 per cent to 1.52 per cent for up to £25,000 in savings.
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This tariff includes a fixed introductory bonus of 1.32 percent AER for the first 12 months.
After 12 months, the floating rate applies to the pot with no bonus. Interest is calculated daily and paid monthly to customers.
New customers can open a Spend and Save account online in minutes by downloading the TSB app, but customers must be over 18 and a UK resident to do so.
The Spend and Save accounts offer account holders a range of additional features, including a £5 cashback fee per month for a six-month period if they make 30 debit card payments in that month.
BoE interest rates were raised to 1.75 percent in August but are only expected to rise.
Market forecasts are for policy rates to end the year above 3 percent, peaking at nearly 4.1 percent in June 2023.
As these rates affect the rates offered by high street banks, Brits can expect more competitive rates in the coming months.
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