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 rate products may change as a result of the Bank of England base rate change.
• Fixed rate products are not impacted by a change in the Bank of England base rate.
• Tracker product rates will change.

If we increase your interest rate, we’ll make details of the rate change available in branch, on the phone and on our website, within 3 days of the change. If we decrease the interest rate, we’ll let you know personally and give you at least 2 months notice.

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.

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 is impacted by a base rate change?

A base rate change only affects base rate linked accounts held by existing customers who opened their account before the last working day of the month in which a Bank of England base rate change is advised.

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

Why don’t rates change immediately for Credit Cards?

Under our terms and conditions for existing customers with Bank of England base rate linked accounts, rates change on the last working day of the month of a base rate change.

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 a the change to the base rate?

There will be a message in the statement sent the month after a 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.

Who is impacted by a base rate change?

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

Our Business Savings products are not directly linked to the base rate but we do normally review them following a change. If we make any changes to our rates we will notify our customers on our website and in our branches.

Why don’t rates change 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.

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.

Our current account products are not linked to the base rate. Customers can continue to earn interest on a Classic Plus account on balances up to £1,500 as long as they pay in a minimum of £500 a month and register for paperless statements and paperless correspondence. Overdraft rates are not linked to the base rate.