TSB has today announced that from 2 May, it will be reducing the interest rate on its Classic Plus Current Account from 3% AER to 1.5% AER.
With a 1.5% AER, TSB customers will earn up to £22.38 a year in interest on balances up to £1,500.
TSB is in the process of writing to customers to advise them of the changes.
TSB’s Director of Everyday Banking Products, Craig Bundell, said: “We've reviewed our rates, as we do regularly with all our products, to make sure they’re sustainable and give our customers a competitive interest rate as part of our current account offer”.
“This new rate remains one of the best in the market. And, just like before, our Classic Plus account offers lots of benefits to customers. We are the only bank to offer our Fraud Refund Guarantee, where TSB protects customers that are victims of fraud by refunding every penny lost.”
Notes to editors
- Decisions on rates are driven by the competitive environment, overall cost to serve all elements of Personal Current Accounts, and customer preferences on key features of their account.
- At the new rate, customers can earn up to £22.38 a year in interest on balances up to £1,500. To benefit from the 1.5% AER customers must pay at least £500 a month into their current account, register for Internet Banking and opt for paperless statements and paperless correspondence.
- Alongside this interest, TSB PCA customers can benefit from 2% Gross/AER fixed for a year with our Monthly Saver account. Customers can save from £25 to £250 per month and enjoy instant access.
- In addition, customers can also save through our fixed rate ISAs (FRISAs). From this week, our 18 month and two-year FRISAs will offer 1.00% and 1.05% respectively.
- TSB was recently highly commended as a PCA provider in the Moneyfacts 2019 awards.
- TSB has introduced repayment holidays on its personal loans which allows customers to take a break from their repayments, with up to two one-month repayment holidays every year.