Tesco Current Bank Account

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  • grumbler
    grumbler Posts: 58,629
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    "If another account pays the same 3%, you'll get whopping extra 0.045% on £3K, i.e. ~£1.35 over a year." - Are you advocating a "Non Skiming" policy on a money saving forum?
    I am advocating at least not doing this monthly.
    The benefit of dividend reinvestment in stocks and shares is well documented.
    Well, this is just a primary school maths combined with common sense, that doesn't need any extra proofs. And dividends aren't paid monthly.
    There is an analogy between dividends and interest, in that both benefit from a compounding effect which gets better as time goes on.
    In this particular case the benefit from doing this monthly, rather than yearly, is no more than £1.35.
  • pafpcg
    pafpcg Posts: 878
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    You will only get 3% interest if you keep the balance at less than £3,000 and compound the monthly interest. If you keep a balance of £3,000 or more in the account, the interest rate is 2.96%pa. (It's the difference between AER and Gross interest rates.)
  • jimjames
    jimjames Posts: 17,532
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    grumbler wrote: »
    In this particular case the benefit from doing this monthly, rather than yearly, is no more than £1.35.

    On this one account. If you ignore excess funds on multiple accounts it could start to build up and be more significant
    Remember the saying: if it looks too good to be true it almost certainly is.
  • grumbler
    grumbler Posts: 58,629
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    So will the amount of work.
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    I manually sweep the interest that takes my balance over £3000 into accounts that I use to pay monthly bills. At times I sweep some money from Tesco savers into the current account to top it up to the maximum effective level.

    The Tesco savers provide direct debits to qualify for unrelated current accounts that pay interest but require direct debit mandates.

    I managed ( in the past) to get a 22 month interest free on purchase credit card deal via the Tesco current account. This is nearing the end of the interest free period so interest earned goes towards paying of my debt accrued.

    J_B.
  • Spidernick
    Spidernick Posts: 3,803
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    xylophone wrote: »
    I can't help thinking that such will be the pent up demand when Tesco open up afresh for (current account) business that they'll be "pausing" again so that they can cope.....:)

    I've been checking the status of the account opening every few days. Today instead of the 'pausing' new applications message the site is undergoing maintenance. Does anyone know if, in theory, a Tesco current account can now be opened, or does it mean new applications have been closed for the foreseeable future? Thanks.
    'I want to die peacefully in my sleep, like my father. Not screaming and terrified like his passengers.' (Bob Monkhouse).

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  • WillPS
    WillPS Posts: 3,257
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    Yes!

    By logging in to Tesco Online Banking, I'm able to apply again.

    Min £750/month pay in and 3 DDs now.
  • WillPS
    WillPS Posts: 3,257
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    Current Account - Important information
    With effect from 4 April, our Current Account Guarantee has changed for new applications. To earn 3% AER credit interest on balances up to £3,000 until April 2019, you must now pay in at least £750 per statement month, and pay at least three direct debits each statement month (excluding direct debits to Tesco Bank savings accounts).

    Thats a bit of a killer, should be able to make it work though.
  • gingercordial
    gingercordial Posts: 1,681
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    WillPS wrote: »
    Current Account - Important information
    With effect from 4 April, our Current Account Guarantee has changed for new applications. To earn 3% AER credit interest on balances up to £3,000 until April 2019, you must now pay in at least £750 per statement month, and pay at least three direct debits each statement month (excluding direct debits to Tesco Bank savings accounts).

    Thats a bit of a killer, should be able to make it work though.

    Kicking myself that I switched my second Tesco current account away to Nationwide Flexdirect at the end of last year. Intended to apply for a new one but didn't do it before the change.

    Might still be able to make this work for a new one...
  • OceanSound
    OceanSound Posts: 1,482
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    I've opened a Tesco current account. Not yet paid in the £750 or setup the direct debits. Can someone tell me. If I deposit £3000, does the interest start accumulating from date of deposit or does it only start once the 3 direct debits are setup. Or maybe even when the 3rd direct debit leaves the account?
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