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TSB Announces Interest Rate Changes Following Bank of England Base Rate Rise
- Variable mortgage rates will increase by 0.25%.
- Variable savings rates for children will increase by 0.25%.
- All other variable rate savings accounts will increase by 0.10%.
- TSB's Classic Plus current account continues to offer 5% interest on balances up to £1,500.
Last Thursday the Bank of England decided to increase the base rate by 0.25% to 0.75%. As a result, TSB will be making changes to interest rates on its savings and mortgages.
Interest rates on TSB’s variable rate mortgages will increase by 0.25%. Interest rates on the Young Saver Account and Junior ISA will also increase by 0.25% as the Bank continues to encourage the younger generation to save for their future. All other variable rate savings accounts will increase by 0.10%1. Interest rate increases for borrowers and savers will come into effect on 1 September 2018.
Helping customers to borrow well
Many TSB customers who have taken advantage of TSB’s range of fixed rate mortgages will not be affected by this base rate increase.
For customers with a variable rate mortgage, TSB understands that many customers will be experiencing a further increase in their mortgage payments, following on from the previous Bank of England base rate rise in November last year. Customers with concerns or questions should contact their local branch or our customer service team to book an appointment with our mortgage advisers who will be happy to help and discuss what options are available.
A summary of TSB’s interest rate changes can be found in the table below:
| Variable borrowing rates | ||
|---|---|---|
| Product | Rates increased by | Effective date |
| Variable rate mortgages – existing customers | 0.25% | 1 September 2018 |
| Business banking variable lending | 0.25% | 3 September 2018 |
| Base rate linked credit cards | 0.25% | 31 August 2018 |
| Variable savings rates | ||
|---|---|---|
| Product | Rates increased by | Effective date |
| Junior Cash ISA | 0.25% | 1 September 2018 |
| Young Saver(balances of £0-£20,000) | 0.25% | 1 September 2018 |
| All other variable savings accounts for new and existing customers1 | 0.10% | 1 September 2018 |
| Business banking savings rates | 0.10% | 1 September 2018 |
Notes to editors
- 1All other variable savings accounts for new and existing customers will increase by 0.10% with the exception of around 2,000 closed book accounts that have a guaranteed minimum rate of 0.50% which has been protected from previous rate decreases.
- The lowest rate paid to all TSB savings customers will be 0.30%.
- The interest rate on the TSB Classic Plus current account will remain at 5% AER on balances up to £1,500.
- On a typical variable mortgage of £100,000, an increase of 0.25% would see monthly payments rise by around £3 per week.
TSB was built to bring more competition to UK banking and ultimately make banking better for all UK consumers. TSB only serves local customers and local businesses, to help fuel local economies, because communities thriving across Britain is a good thing for all of us.
We have a simple, straightforward and transparent banking model and make clear on our website how we operate and make money. We offer the products and services people tell us they want, with none of the funny stuff people normally associate with traditional banks.
For further information about TSB Bank plc, please visit our website www.tsb.co.uk.
