Tesco Internet Savings Account

tergly

I opened A Tesco Internet Savings Account in June 2025. I deposited £43,000, interest rate of 4.01% for the first year. My balance at 31.03.26 is £43,384. How is this interst being calculated?

Neil49

I would check the terms and conditions of the account but it is possible that the interest rate is made up of a basic rate plus a bonus which is calculated on the anniversary of the account opening date.

eskbanker

Tesco splits its interest rate into a standard and a bonus component (see your account info), and the former is paid in March and the latter after 12 months.

x44

Here we go…..this is for another Tesco account edition

You get a standard interest (lowish) interest rate plus a bonus for 12 months from acc opening. In my case for the edition I had the standard rate was 1.05% plus a 3.15% bonus making it 4.2% total gross AER.

Significantly in the key fact document about the bonus part

"Which we will pay to you at the end of the bonus period (on the anniverary of the account opening)"

and the standard part of the interest is stated to be paid annually in March

flaneurs_lobster

That £384 interest is 9 month's-worth of £43k at 1.nn% APR (the rate is variable), the standard variable part of the interest.

The rest is paid at the 12 month anniversary (or earlier if you close the account).

tergly

Thank you all for your replies and explanations. I am very relieved!

goldieandblackie

You could have just emailed Tesco🤣

Digital_Payback

https://forums.moneysavingexpert.com/discussion/comment/81978887#Comment_81978887

Probably, but members know there’s a lot more financial wisdom and savings knowledge on this forum. 😀

tergly

goldieandblackie

Possibly, but good to have independent knowledge!

goldieandblackie

Putting 43k into a Tesco saving account is utter madness, if you had invested into the S&P 500 even over a few months you would have earned 4/5 years of interest in that timeframe.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81999750#Comment_81999750

The Art of Investing by Hindsight.

Always guaranteed fantastic returns if only you had done something in the past - now that we know the actual outcome.

Got any tips for yesterday's lottery numbers?