TSB to cut interest on this account – deadline to note for 1.5 percent rate

TSB to cut interest on this account – deadline to note for 1.5 percent rate

TSB will be changing the interest rate on its “Classic Plus Current Account” from December 2, 2020. Currently, it is no longer possible to open this account with TSB but existing holders are receiving a rate of 1.5 percent AER/1.49 percent gross variable on balance up to £1,500.

This rate will reduce to zero percent AER from December 2, with customers still able to earn interest until that point and then use their account as normal into 2021.

A spokesperson from TSB provided the following comments on the changes: “We regularly review our products to ensure they are fit for purpose and are in line with market conditions. “Given the continued low-interest rate environment, we have made the decision to reduce the interest on our Classic Plus account.

“We have recently launched our new Spend and Save current account, which addresses the needs of our customers – to help with their everyday banking needs and provide them with simple tools to help manage their money.”

READ MORE: NatWest launch new savings account offering a 3% interest rate

The research showed that the pandemic has prompted more than two in five (44 percent) people to think differently about their money, taking stock of outgoings and daily spending in the midst of economic uncertainty.

A further two in five (39 percent) said they become more worried about money since the pandemic started.

Additionally, a lack of daily spending over lockdown likely led to more than a third (36 percent) of Brits feeling better off, as coronavirus restrictions were eased 62 percent said that they will be actively looking for ways to make their money go further, and 40 percent said they would continue to pay more attention to their bank balance than they did before.

Pella Frost, the Head of Personal Current Accounts at TSB, welcomed the new account with the following comments: “Spend and Save has been designed to help our customers have more control of their money.

“We know that now, more than ever, our customers want us to make it easier for them to manage their money, so the variety of features available should help them feel more money confident.”

Up to five “Savings Pots” can be opened within the Spend and Save account and there is a variable rate of interest of 0.04 percent Gross Monthly/ 0.05 percent AER available.

Additionally, TSB noted the account offers the following incentives:

  • “Save the Pennies – automatically rounds up every debit card payment made to the nearest pound, so spare change goes straight into a Savings Pot or any other eligible TSB savings account customers have set up.
  • “Text Alerts – can be set up so customers will always know what their balance is and be warned if they’re in danger of going overdrawn.
  • “Auto Balancer – allows customers to choose a minimum balance limit on their Spend & Save account. If their balance falls below that, it will automatically be topped up from a Savings Pot.
  • “Cashback – for the first six months from account opening, new customers will be able to earn £5 cashback every month when they make 30 payments or more on their debit card each month.”

Published at Wed, 23 Sep 2020 11:43:24 +0000