Tesco Bank to increase interest rates for savings and mortgage customers

Edinburgh-based Tesco Bank is to increase its underlying standard interest rates for savings and it’s Standard Variable Rate (SVR) for mortgages by 0.15 per cent.

The Bank, which employs more than 2000 staff at its headquarters in the Scottish capital, said the decision to apply the increase to both savings and mortgage products reflects its desire to treat customers equitably and fairly.

Chief executive Benny Higgins said: “We have consistently offered savings and mortgage customers some of the most competitive rates on the market. Following the Bank of England’s decision last week, we know savings customers expect us to help them by increasing interest rates.

“It is, however, critically important that we balance the needs of our savers with those of our borrowers and we have carefully considered how this change will affect our mortgage customers. We believe our approach of increasing rates for both savers and mortgage holders is equitable and fair in balancing the interests of customers.”

Tesco Bank’s underlying standard interest rate for savings products will increase by 0.15 per cent, offering customers one of the most competitive underlying rates available. The Bank’s Standard Variable mortgage rate will increase to 4.04 per cent, 0.27 per cent below the market average rate of 4.31 per cent.

Tesco Bank savings customers’ interest rates will increase on 1st December, with mortgage customers being notified in advance of their rate increasing on 1st February.