A simples guide

Tesco ISA

Tesco has made a serious impact on the financial services market. You can save for a rainy day with Britain’s favourite retailer and while the high-street banks used to enjoy a monopoly on this kind of account, there is no reason why the big guns of the retail space can’t compete too.


Tesco has changed the banking landscape by bringing major financial services so close to the fruit and veg aisle and it now has an impressive portfolio of current accounts, mortgages and ISAs.


So if you’re thinking of long-term savings plans then check out what Tesco has to offer and compare it to the established finance competition with the help of our price comparison service. After all, every little helps.


What ISAs are available at Tesco?

One of Britain’s biggest retailers offers the full line-up of ISAs that you have come to expect from the high street banks, so the critical factor is the Tesco ISA rates.

The Instant Access Cash ISA gives you constant access to your money, so you can make payments whenever you want and withdraw money without incurring major penalties. If you link it to a Tesco current account, then you can control all of your accounts from a mobile app.

Simply set money aside when you can afford to spare it and add to your tax-free savings pot. This makes the Tesco Cash ISA an effective savings vehicle. The Tesco Fixed Rate Cash ISA generally pays a better rate of interest, which is guaranteed for a year, but there are restrictions to take into account. If you don’t need access to your money, then you can lock it away for a set period and get a guaranteed Tesco fixed ISA rate that is better than the basic rate offered on the easy access cash ISA.

Tesco also offers a Junior Cash ISA so you could get your children started on life with a healthy lump sum. It’s a tax free way to give your children a helping hand to get on the property ladder, or to help with their further education. You might even pay for the gap year travels with the money. Whatever they choose to do, they’ll appreciate the helping hand that you can give them with this Tesco Fixed Rate ISA. 

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Why go with Tesco for an ISA?

You might think it makes more sense to go with a high street bank for complex financial products, but Tesco has fast established a solid reputation with its current accounts, mortgages and ISAs. It provides all the same benefits together with Tesco’s renowned customer service and the convenience of banking where you shop.

You get the full range of flexibility, from instant access cash ISAs through to fixed-term deals and the interest rates are competitive.

A better question is, perhaps: “Why not go with Tesco for an ISA?”

An ISA is, by definition, a stable and long-term product that you should not need to check on or be involved with on a daily basis. With that in mind, as long as you are happy with the terms and conditions then it simply should not matter where the account is based. If you trust the company, the percentage is right and you’re content with the deal, then Tesco is as good as anywhere else.

Tesco is a registered member of the Financial Services Compensation Scheme, so if Tesco Bank somehow goes to the wall then your savings of up to £75,000 are protected and effectively insured. So if you like the terms, you’re happy with the brand and you want to entrust your money to Tesco, then go ahead. Just make sure you’ve compared the market using our comparison service and seen what the competition can offer. Get comparing and see how much you could save!

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