Internet Saver
1% bonus interest on balances up to £100,000 for 12 months when you open an Internet Saver Account
Savings News
As of the 7th October 2008 the government increased the compensation limit covered by the Financial Service Compensation Scheme for deposits to £50,000 (£100,000 for joint accounts). Click here to find out more.
Key benefits of Tesco Internet Saver
- Competitive rate of interest - 2.25% Gross/AER (includes 1% bonus interest on balances up to £100,000 for 12 months).
- Instant access to your funds (Please Note: for security reasons there are daily limits on the amounts that can be withdrawn from your savings account. Find out more about daily withdrawal limits)
- Minimum opening balance of just £1
- Online Banking - Once you have registered for Online Banking you will be able to check your account balance 24 hours a day 7 days a week online - anywhere you have access to the internet. When you have received your Card Reader you will also be able to set up and amend payee details online whenever you choose to do so enabling you to transfer money quickly to another bank or an account in another name. Find out more about managing your account online...
- Regular savings - Set up a Direct Debit to make regular (and one off) payments into your account when it suits you. Then watch your savings grow...
Note that you must be over 18 to open an Internet Saver Account.
Managing your Internet Saver
You will be able to access your account 24 hours a day, seven days a week online.
Depositing Money
You can pay money into your account by:
- Faster Payment or BACS transfer (Please Note: Faster Payments are fully supported by Tesco Savings, but the other Bank or Building Society will also need to use the Faster Payment system for a payment to be made using this method. We are unable to accept CHAPS payments)
- Direct Debit / Standing Order
Withdrawing Money
Withdrawals for Internet Saver account must be ordered using the Online Banking service. You can withdraw your money at any time online by transferring it to a nominated account (Please Note: for security reasons there are daily limits on the amounts that can be withdrawn from your savings account. Find out more about daily withdrawal limits...
Our interest rates
- With our Internet Saver Account you can earn up to 2.25% Gross / AER
- Interest on our Internet Saver account is paid annually in March.
| All balances | Current (Effective from 28/05/2009) | Previous (Effective from 16/04/2009) |
|---|---|---|
| Gross | 2.25% | 2.50% |
| AER | 2.25% | 2.50% |
| Net | 1.80% | 2.00% |
Rates correct at 28th May 2009. Rates shown include a 1% bonus for 12 months.
Bonus Details
Open a Tesco Internet Saver Account and earn 1% bonus interest on balances up to £100,000 for 12 months.
Accounts with balances above this will receive the standard underlying rate (currently 1.25% Gross / AER) on the amount above £100,000. New customers only. Only one account per person is eligible for the bonus.
Following the end of the bonus period the rate will revert to the standard underlying rate (currently 1.25% Gross / AER).
When will my bonus interest be paid?
Your bonus will be calculated on the daily cleared funds held in your account for the first 12 months your account is open. It will be applied to your account and shown separately on your statement at the next interest payment date.
Tesco Personal Finance reserves the right to withdraw this promotion at any time.
How do we compare?
At 2.25% Gross/AER*, we believe that a Tesco Internet Saver account offers customers a very competitive rate of interest. In addition, there is no requirement for a linked account, and no penalty for withdrawals or limitation on the number of withdrawals made.
The table below looks at the interest you could earn for Tesco's Internet Saver account compared to some other online accounts offered by high street savings providers.
*Open a Tesco Internet Saver Account and earn 1% bonus interest in addition to the standard underlying rate of interest (currently 1.25% Gross / AER) on balances up to £100,000 for 12 months. Accounts with balances above this will receive the standard underlying rate on the amount above £100,000. New customers only.
| Savings Provider | Product | Gross AER (including bonuses) Balance = £10k |
Underlying Rate |
|---|---|---|---|
| Tesco Personal Finance | Internet Saver | 2.25% | 1.25% |
| Birmingham Midshires¹ | Direct Internet Savings Account | 1.40% | 1.40% |
| Abbey² | eSaver | 1.10% | 0.10% |
| NatWest | e-savings | 1.10% | 1.10% |
| HSBC³ | Online Bonus Saver | 0.75% | 0.25% |
| Nationwide Building Society† | e-Savings | 0.45% | 0.45% |
| Halifax | Web Saver (Without cash card) | 0.15% | 0.15% |
| Barclays†† | e-Savings | 0.10% | 0.10% |
Data sourced from Defaqto 14 May 2009. Tesco Internet Saver rates correct at 28 May 2009.
¹ You must set up a Linked Account to operate your account.
² AER includes a variable rate bonus for the first 12 months, which is currently up to 1.00% gross/AER depending on balance.
³ Bonus interest (in addition to standard interest) is paid for any calendar month during which a withdrawal has not been made or the account closed.
† Funds can only be transferred from the Nationwide FlexAccount to e-Savings.
†† Lower interest rates are paid where one or more withdrawals have been made in the previous calendar month.
- Gross is the interest rate paid before deduction of tax
- Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year
- Net is the interest rate paid after the deduction of tax
Tesco Internet Saver Account rates are subject to change. Interest is calculated on a daily basis and is paid annually. Interest will be paid the last business day in March.
Non-tax payers
Please note, if your interest is paid gross, you will be required to fill in an inland revenue R85 form.
