What is the Bank of England base rate and why does it matter to me?

What does a change in base rate mean for my savings account?

The Bank of England base rate is one of a number of factors we take into account when reviewing interest rates. Any change in the base rate will form part of ongoing rate reviews across our savings product range.

• Variable product rates are increasing. See below to find out how your account is impacted.
• Fixed Rate products will not be affected by this change.
• Tracker accounts will change.

TSB regularly review competitor rates to make sure we are paying fair and competitive rates to our savings customers.

Interest rates on our Young Saver Account and Junior ISA will increase by 0.25% on 01 September 2018 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% on 01 September 2018.

How can I make the most of my savings?

We know that the current low interest rate environment makes it harder for you to grow your savings and the base rate change could prompt you to consider whether you could get more from your money.

We can help talk through your options in branch, or you can open accounts and manage your savings online.

My Fixed Rate Bond or Fixed Rate Cash ISA has matured, or is due to shortly, what does this mean for me?

If you had a Fixed Rate Bond or ISA and did not provide maturity instructions, your money will have transferred into either a matured funds account or Cash ISA Saver respectively, which now pays a variable rate of interest.

For up to date rates please pop into your nearest branch or look online tsb.co.uk/savings.

Find out how Bank of England rate changes can affect your mortgage here.

Who does the base rate change affect?

This only affects base rate linked accounts held by customers who opened their account before 31st August 2018.

Why aren't rates changing immediately for credit cards?

Under our terms and conditions for customers with Bank of England base rate linked accounts, rates will change on 31st August 2018.

Is my card base rate linked and is my account impacted by the base rate change?

Your statement sent after the month of the base rate change announcement will include a message about Bank of England base rate. This will tell you if your interest rate has changed. If there is no message on your statement, the account is not base rate linked and therefore the interest rate is not affected.

Why is my interest rate changing?

The interest rate is changing because your account is linked to the Bank of England base rate under the terms and conditions of the card.

How will I be notified of the change to the base rate?

There will be a message in the statement sent the month after the base rate announcement. This message will remind you that the interest rate charged has changed due to the base rate. The statement will show when the minimum payment needs to reach the account by.

Will my interest change if the base rate changes again?

If you have a base rate-linked account then the interest will change every time the base rate changes.

Important information about your credit card interest rate - November 2017 (PDF, 81KB)

Important information about your credit card interest rate - August 2018 (PDF, 81KB)

Who does the base rate change affect?

This affects existing lending customers with overdrafts or loans linked to the Bank of England base rate.

Why aren't interest rates changing immediately?

Our lending Terms and Conditions outline that any change to the base rate will take effect on the first working day of the following month.

Our Business Savings products are not directly linked to the base rate but we do normally review them following when there is a change. Following the increase in the Bank of England base rate in August 2018 we will increase the interest rates for the Client’s Call and Designated Client Accounts to 0.20% and increase our Business Instant Access Account interest rate to 0.15% on 1 September 2018.

How can customers find out whether their business loan or overdraft is affected by Bank of England base rate?

All business overdrafts are affected by the base rate. For details of business loans affected by the base rate change, customers can contact the Business Banking Centre on 0345 835 3858, option 4.

How will customers be told about the change to their loan or overdraft?

Business customers with affected loan products will receive confirmation of their new interest rate in a mailing.

There will be no change to the interest rates on TSB’s current account range. Our current account products are not linked to the base rate. For example, customers can continue to earn 5% AER / 4.89% gross variable interest on balances up to £1,500 with TSB’s Classic Plus account as long as they pay in a minimum of £500 a month and register for Paperless Statements and Paperless Correspondence. Overdraft rates will also remain unchanged.