Tesco Bank

Who they are

Tesco Bank traces its roots back to July 1997, when it launched as a 50:50 joint venture between The Royal Bank of Scotland and Tesco, the UK's largest supermarket. In 2008, Tesco bought out RBS's stake for £950 million, and the brand was officially renamed Tesco Bank in 2009.

Things changed significantly in late 2024. In November 2024, the company's banking business was transferred to Barclays Bank UK PLC, which continues to operate the existing banking products under the Tesco Bank brand through a partnership agreement with Tesco. So if you open a Tesco Bank savings account today, you are in practice banking with Barclays behind the scenes - though the products, app, and website carry on under the Tesco Bank name.

Tesco Bank serves approximately three million customers across the United Kingdom. It is a digital-first provider, and the Tesco Bank app is rated 4.4 out of 5 on the Google Play Store and 4.8 out of 5 on the App Store.

Savings accounts

Right now, the only savings product DepositScout shows from Tesco Bank is the Internet Saver - a straightforward easy access account that you manage entirely online.

The current rate is 4.16% AER (variable), and you can get started with as little as £1. That headline rate does include a bonus element worth knowing about: the account carries a 3.11% bonus rate that is paid separately after 12 months. In practical terms, that means the rate you see today will look quite different in year two once the bonus drops away. If you tend to open an account and forget about it, keep a note in your diary to review at the 12-month mark.

Access is instant, so there is no notice period to worry about if you need your money back.

FSCS protection - a crucial detail for Tesco Bank savers

This is the section worth reading carefully. Your eligible deposits at Tesco Bank are protected up to a total of £120,000 by the FSCS - but that limit is applied across the total of any deposits you hold with Barclays, Barclays Business Banking, Barclays Premier Banking, Barclays Wealth Management, and Tesco Bank combined.

In short: if you already have savings with Barclays under any of those brands, your Tesco Bank deposits count towards the same pot of protection. Any total deposits above the limit between these brands are unlikely to be covered. For most people with modest balances this will not be an issue, but if you are sitting on larger sums spread across both Barclays and Tesco Bank, it is worth checking before adding more.

The DepositScout data confirms the Internet Saver carries FSCS protection up to £120,000, consistent with Tesco Bank's own published information.

Is it right for you?

Tesco Bank's Internet Saver sits in a competitive part of the easy access market. The 4.16% AER is a solid rate, and the £1 minimum balance means it is genuinely open to everyone. The app experience is well-regarded, and managing the account is straightforward.

That said, there are two things to weigh honestly. First, the bonus rate inflates the headline figure - after 12 months, the underlying rate will be meaningfully lower unless Tesco Bank adjusts it upward. Second, the shared FSCS licence with Barclays matters if you already bank there.

If you are a regular Tesco shopper with no Barclays savings to worry about, and you want a fuss-free easy access home for your money, the Internet Saver is worth a look. If you are already with Barclays, or you want a rate that is genuinely bonus-free, it is worth comparing what else is on the market first.

As always, the live rates shown on this page are the most up-to-date figures available - specific rates change frequently, so check those numbers before making any decision.