How to Buy Bitcoin & Crypto with TSB Bank

Key Takeaway: TSB Bank does not offer direct cryptocurrency trading or investment options, but customers can transfer funds to cryptocurrency exchanges compliant with Financial Conduct Authority (FCA) regulations. 

One such FCA-registered platform is eToro, which facilitates trading in more than 70 digital assets, including popular cryptocurrencies like Bitcoin and Ethereum. It accepts GBP deposits via FPS, bank transfers, and debit cards.

How to Buy Bitcoin with TSB Bank

TSB Bank users interested in buying Bitcoin or other cryptocurrencies need to use a digital asset exchange registered with the Financial Conduct Authority (FCA) in the UK.

eToro is FCA-registered and enables British Pound (GBP) deposits through various payment methods such as bank transfers, debit cards, or Faster Payments. Following a deposit, customers can trade 70+ cryptocurrencies and a selection of stocks and ETFs.

Here’s how you can easily buy Bitcoin with TSB Bank through eToro:

1. Open an Account: Visit eToro’s website, create your account, and complete their required verification process (KYC).
2. Deposit GBP from TSB: Log in to your eToro account, select the "Deposit Funds" option, and choose GBP as the currency. Initiate a deposit using a bank transfer or your TSB Bank debit card.
3. Find Bitcoin: Navigate to eToro’s search bar, enter "Bitcoin" or "BTC," and then select the 'Trade' option.
4. Purchase BTC: Enter the GBP amount you want to use for your Bitcoin purchase, double-check your order information, and confirm your transaction to finalise your investment.

TSB Bank’s Policy on Crypto Transactions

TSB does not directly offer cryptocurrency trading or asset custody services. Customers interested in investing in cryptocurrencies can instead move funds from their TSB Bank account to crypto exchanges registered with the Financial Conduct Authority (FCA).

The bank permits customers to use debit cards or standard bank transfers to fund their accounts on FCA-compliant crypto platforms. To mitigate financial risks tied to price volatility, TSB Bank explicitly disallows using credit cards for cryptocurrency transactions.

As part of its commitment to combating financial fraud and maintaining compliance with regulatory standards, TSB Bank actively monitors transactions involving cryptocurrency. Any payments aimed at exchanges not approved by the FCA may be flagged and restricted.

Crypto Trading Fees

Before depositing funds from your TSB Bank account into a cryptocurrency exchange, it's essential to fully understand the costs involved. Here’s an overview of the fees applicable when trading crypto on eToro:

• Trading Fees: eToro charges a transparent, built-in fee of 1% each time you buy or sell a cryptocurrency. 
• Market Spreads: While eToro does not explicitly charge a separate spread fee, traders should be aware that crypto assets inherently carry a spread, which is the difference between buying and selling prices. 
• Withdrawal Charges: TSB Bank customers withdrawing GBP funds from eToro back to their bank accounts are not charged any withdrawal fees by eToro.

With eToro’s clear fee structure, TSB Bank customers can effectively budget and manage their cryptocurrency trading activities.

Best GBP Deposit Methods for TSB Bank

TSB Bank customers have several efficient options for depositing GBP into their crypto trading accounts, particularly through eToro:

• Bank Transfer (Faster Payments Service): TSB customers can quickly transfer funds using FPS. These deposits typically appear immediately, incur no fees from eToro, and aren't limited by maximum transaction amounts.
• Debit Card (Visa/MasterCard): Using a debit card from TSB Bank, clients can instantly deposit up to £30,000 per transaction into their eToro accounts. This option provides rapid access to cryptocurrency trading opportunities.
• eToro Money: Investors from TSB Bank considering larger crypto transactions can use eToro’s proprietary payment system, eToro Money. This method supports immediate transfers, making it ideal for deposits of up to £400,000 per transaction.

Additionally, TSB customers benefit from straightforward, free GBP withdrawals from their eToro accounts, simplifying the retrieval of funds back into their bank accounts.

What is TSB?

TSB Bank is a UK-based retail and commercial bank with roots tracing back to the early 19th-century Trustee Savings movement. Re-established in 2013 after being spun off from Lloyds, it now operates a network of approximately 1750-220 branches and serves over five million customers across the United Kingdom. 

Since its acquisition by Spain’s Banco de Sabadell in 2015, TSB has focused on offering everyday banking, including current and savings accounts, mortgages, loans, and general insurance, through both modern digital platforms and its high-street branch presence.

Conclusion

While TSB Bank doesn't directly support cryptocurrency transactions, customers can invest in crypto by transferring funds to FCA-approved exchanges like eToro. 

Using clearly outlined deposit methods such as FPS or debit cards, and understanding transparent fee structures makes crypto trading accessible and manageable for TSB users.