Martin Lewis offers advice on savings and interest rates
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TSB is a familiar name on the high street, and with interest rates so low at present, its latest offer could help. Interest rates have plummeted following the Bank of England’s 0.1 percent base rate decision back in March 2020. With the central bank last week deciding to keep its base rate at the lowest level in its history, savers are unlikely to be feeling optimistic.
But amid the challenging interest rates, there may be a solid option for TSB customers.
TSB has the choice of its Monthly Saver account, which is helping Britons to grow their cash.
Available to TSB current account savers, the account offers instant access to savings, with no withdrawal charges.
The interest rate of one percent is fixed for the term of the account, which is 12 months from the date it is opened.
Each month, individuals will be able to save anywhere from £25 to £250 to benefit from the interest rate.
After this point, the account will switch to a variable rate Easy Saver account with the bank, which will allow Britons to continue to save.
Savers will also be able to make as many withdrawals as they so wish to their TSB current account.
However, it is worth noting Britons will only be allowed to pay in once a month by standing order.
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To be eligible for this account, people must be aged 16 or over, and a UK resident.
It is also a requirement that they are a TSB current account holder to open this account.
The account can also be managed in a wide variety of ways to provide convenience for savers.
Savers can choose to manage the account in branch, over the phone, online or through the mobile app.
To open this account, Britons will need a £1 minimum bonus, making it easier for those who are just getting started on a savings journey.
While between £25 and £250 must be paid in a month through one payment, there is no maximum limit on the amount which can be saved in the account.
Individuals earning more interest than the Personal Savings Allowance may have to pay extra tax themselves.
TSB explained: “The Personal Savings Allowance is £1,000 for basic rate taxpayers.
“The Personal Savings Allowance is £500 for higher rate taxpayers.
“Additional rate taxpayers don’t receive a Personal Savings Allowance.”
Eligible deposits with TSB are also protected by the Financial Services Compensation scheme (FSCS).
This means that should the worst happen, any funds up to a total of £85,000 are protected, providing Britons with peace of mind.
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