Bank customers will be able to increase their retirement savings with an advantageous interest rate of 2.5%. The TSB also announced the launch of two new fixed rate retirement accounts, with terms of 18 months and three years. Each of these new retirement accounts for SIPP or SSAS savings, plus low-risk fixed-rate and term options for those looking to reduce their retirement risk as they approach retirement.
Savings accounts are particularly ideal for savings of between £1,000 and £500,000, depending on the building society.
As a building society, the TSB was created to help teachers move up the property ladder and buy a home.
Through the financial institution, collective deposits are used to balance the funding of low-deposit mortgages for teachers so that teachers can purchase a home.
This latest increase in the TSB interest rate comes as savers face soaring inflation, which is impacting savings.
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Here is the complete list of new construction society accounts:
Fixed rate pension account number 4, 2.50% gross pa/AER, fixed until June 17, 2025 (three years)
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David Leek, Head of Sales and Marketing at TSB, explained how these rising rates can benefit his customers.
Mr. Leek explained: “Like all building societies, we use the collective deposits of savers to support us in the financing of mortgages.
“But we are different from other providers because saving with us specifically helps teachers buy houses.
“Simply put, the more members save with us, the more low-deposit mortgages we can lend to teachers, and given the current challenges in the housing market, we are committed to helping as many teachers as possible.
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“By opening a retirement account with us, savers not only find a safe home for their retirement savings, as they seek to reduce the risk of pre-retirement investments, they get an account with a bonus social purpose , doubling the feel good factor.
In addition, the real estate company shared the various easy access and current account products it offers, as well as the interest rates attached to them.
These accounts are ideal for those who want easy access to their money at all times.
These TSB tariffs include:
Easy Access Repo (Number 1), 0.3% Gross Pa/AER (Unlimited Withdrawals, No Notice Required)
Repo 90 (number 1), 1.05% pa/AER (withdrawals without loss of interest subject to 90 days notice)
Repo 30 (number 1), 0.90% gross pa/AER (withdrawals without loss of interest subject to 90 days notice)