TSB Spend & Save Plus current account review

TSB has a complex history. Having been founded as Trustee Savings Bank in 1810, it merged with Lloyds Bank in 1995 to become Lloyds TSB in 1999. In 2009, Lloyds TSB Group bought HBOS and became Lloyds Banking Group.

In 2013, TSB Bank began operating as a separate business within Lloyds Banking Group and 2 years later, TSB was bought by the Spanish banking group Sabadell. TSB currently offers a range of financial products including current accounts.

What is the TSB Spend & Save Plus account?

The TSB Spend & Save Plus account operates in the same way as a standard current account, but also offers a £100 interest-free overdraft, the opportunity to earn cashback and a number of features to help you save money. In return, you’ll need to pay £3 per month.

You can open the account individually or jointly and it comes with a Visa debit card.

How does it work?

The TSB Spend & Save Plus current account offers the following key features:

• £100 interest-free overdraft. Arranged overdraft is subject to application and approval. If you go over the interest-free amount, you’ll pay interest at a rate of 39.90% EAR.
• Cashback. Earn £5 cashback each month, providing you make 20 payments or more on your debit card each month.
• No charges abroad. TSB won’t charge you for using your debit card for purchases or ATM withdrawals abroad.
• Savings Pots. Set up individual savings pots, set goals and track how your savings are growing. Savings Pots earn interest at a rate of 2.52% AER, which includes a bonus of 1.52% AER for the first 12 months.
• Save the Pennies. Automatically round up every debit card payment to the nearest pound. These spare pennies go into your Savings Pot or any other eligible TSB savings account you have.
• Auto Balancer. Lets you choose a minimum balance limit on your Spend & Save Plus account. If your balance falls below that, money will automatically be moved from your chosen Savings Pot to top it up.

Who is it for?

You can apply for the TSB Spend & Save Plus account if you’re at least 18 years old and a UK resident. Providing you’re happy to pay £3 per month. for the account, it can be a good option for those after a small interest-free overdraft, those who regularly travel abroad or those who need a little help building up their savings.

What are the benefits?

As well as offering a £100 interest-free overdraft for those who dip into the red, the TSB Spend & Save Plus current account also offers a helping hand for those looking to save, including £5 cashback each month. It could also be a good option for those who like to travel, thanks to its lack of fees abroad.

Our expert says: Is a TSB Spend and Save Plus account worth it?

"There are a few differences between the TSB Spend and Save account with no monthly fee and the Spend and Save Plus account that charges £3 a month. But unless you need to dip into an overdraft from time to time and you regularly travel overseas, I’m not convinced the £3 monthly fee is worth paying.

Unlike the free account, the Spend and Save Plus account gives you a £100 interest-free overdraft and fee-free spending on your card abroad. But other than that, the benefits of the accounts are fairly similar. Both accounts offer TSB Rewards, giving you savings on treats like takeaways and holidays, and both have interest-paying savings pots.

In addition, you can earn £5 cashback every month, provided you make 20 debit card payments each month. But while this cashback only lasts six months with the Spend and Save account, it’s ongoing with the Spend and Save Plus account.

Normally, I wouldn’t feel particularly overwhelmed by either of these accounts. But currently, if you switch to one of these accounts, you’ll earn £100 in cash, plus £15 each month for six months, giving you triple the cashback and making these accounts a little more enticing.

What’s more, if you stick with the account until April 2025, you can choose a treat from a hotel stay for two, cinema tickets or NOW Entertainment membership. Because of this, I’d be tempted to take out the free account, make the most of these benefits, and potentially close the account after April 2025 if it wasn’t working out."

Rachel Wait

Writer

How to apply

You can open a TSB Spend & Save Plus account online or via your TSB app. You’ll need to have 2 official documents on hand to verify your identity and address. These could include a passport or UK driving licence for ID and a utility bill or bank statement for address verification.