Savings: TSB increases interest rates to 2.5% – ‘Feel good factor!’ | Personal Finance | Finance
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Customers at the bank will be able to boost their retirement savings with a favourable interest rate of 2.5 percent. TSB has also announced the launch of two new fixed rate pension accounts, with terms of 18 months and three years. Each of these new pension accounts for SIPP or SSAS savings, as well as offer low risk fixed rate and term options for those looking to de-risk their pensions as they approach retirement.
The savings accounts are particularly ideal for savings between £1,000 and £500,000, according to the building society.
As a building society, TSB was created to help teachers get on the property ladder and purchase a home.
Through the financial institution, collective deposits are used to balance the funding of low deposit mortgages for teachers so teachers can buy a home.
This latest increase to TSB’s interest rate comes as savers are dealing with skyrocketing inflation, which impacts savings.
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Here is full list of the building society’s new accounts:
Fixed rate pension account issue 4, 2.50 percent gross p.a./AER, fixed until June 17, 2025 (three years)
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David Leek, the head of sales and marketing at TSB, shared how these hiked rates can be beneficial for its customers.
Mr Leek explained: “Like all building societies, we use the collective deposits of savers to support us in funding mortgage lending.
“But we’re different to other providers because saving with us specifically helps teachers buy homes.
“Put simply, the more members save with us, the more low deposit mortgages we can lend to teachers and given the current housing market challenges we’re determined to help as many teachers as possible.
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“By opening a pension account with us, savers are not just getting safe home for their retirement savings as they look to de-risk investments in the lead up to retirement, they’re getting an account with a bonus social purpose, doubling the feel good factor.”
Furthermore, the building society shared the various easy access and notice account products it has on offer, as well as their attached interest rates.
These accounts are ideal for those who want the option to readily access their money at any given time.
These TSB rates include:
Easy access pension (issue 1), 0.3 percent gross p.a./AER (unlimited withdrawals, no notice required)
Pension 90 (issue 1), 1.05 percent p.a./AER (withdrawals without loss of interest subject to 90 days’ notice)
Pension 30 (issue 1), 0.90 percent gross p.a./AER (withdrawals without loss of interest subject to 90 days’ notice)
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