Published On: Wed, Feb 24th, 2021

Bank account: Good news for savers as TSB launches new Spend and Save account | Personal Finance | Finance

TSB is a popular name on Britain’s high streets, with millions using the provider each year for their banking needs. Back in September 2020, the bank took the decision to launch its ‘Spend and Save’ current account, offering a number of features intended to help people progress in their money saving journey. Taking the offering one step further, today the provider unveiled ‘Spend and Save Plus’ – a new account which it states is designed to help customers feel more money confident.

As many look to put money away for a rainy day, or indeed for the end of lockdown restrictions in the UK, the new launch could be a helpful option. 

Rachel Springall, finance expert at Moneyfacts, spoke to about the new release.

Ms Springall provided further insight into the account, and the steps Britons may wish to take going forward.

She said: “The new Spend and Save Plus account by TSB is well worth considering, however, it is worth noting the full terms and conditions to earn the cashback, weigh up the account fee and overdraft tariff.

However, incentives such as rewards or switching payments could be a way to draw in customers.

Ms Springall concluded: “Current account switching perks are also returning, but due to the record-low interest environment it’s unlikely we will see many headline-grabbing credit interest rates offers return to the market.

“As an example, only a few current accounts  pay reasonable rates of interest, but they limit the balances that will have interest applied or instead pay cashback or a reward payment.”

Ms Springall also drew attention to a potential alternative to the new TSB account, offered by the Halifax Reward Current Account.

This account offers monthly rewards, including a £5 monthly payment, charging a £3 monthly fee waived if consumers credit the account with £1,500 or more each month.

Instead of the £5 reward, customers may also be able to secure digital film rentals or magazines if they should so prefer.

For this account, customers are required to spend £500 per month, or keep in credit of £5,000 to qualify. 

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