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  • FIRST POST
    • newuser78
    • By newuser78 14th Mar 17, 1:53 PM
    • 177Posts
    • 34Thanks
    newuser78
    Tesco Current Bank Account
    • #1
    • 14th Mar 17, 1:53 PM
    Tesco Current Bank Account 14th Mar 17 at 1:53 PM
    Managed to sign up for a current account with Tesco which pays 3% interest of up to £3k.

    First day the account became active, I put the whole 3k into the account.

    Due to interest, the balance is now £3004.62 (exciting!), does this mean that I no longer get 3%? E.g. do I need to take £4.62 out of account?
Page 1
    • eskbanker
    • By eskbanker 14th Mar 17, 2:03 PM
    • 5,005 Posts
    • 4,756 Thanks
    eskbanker
    • #2
    • 14th Mar 17, 2:03 PM
    • #2
    • 14th Mar 17, 2:03 PM
    You will get interest on the £3K if the balance is higher than this so there's no need to transfer the surplus (other than to earn some interest elsewhere of course).
    • teddysmum
    • By teddysmum 14th Mar 17, 3:17 PM
    • 7,876 Posts
    • 4,697 Thanks
    teddysmum
    • #3
    • 14th Mar 17, 3:17 PM
    • #3
    • 14th Mar 17, 3:17 PM
    You had me all excited, then, expecting that they were open for new accounts again....but they aren't.
    • Katiehound
    • By Katiehound 14th Mar 17, 3:18 PM
    • 3,578 Posts
    • 36,165 Thanks
    Katiehound
    • #4
    • 14th Mar 17, 3:18 PM
    • #4
    • 14th Mar 17, 3:18 PM
    With any of the accounts that say interest paid on £3K, £1.5K whatever, the interest is paid on up to that upper limit but not on any money over.

    If I remember rightly Lloyds Club a/c t&cs were worded in such a way that it sounded as if you had over £5K in the account you would receive nothing! I even queried that fact- badly expressed.
    Being polite and pleasant doesn't cost anything!

    If you found my posting helpful please hit the "Thanks" button!
    Thank You
    • where are we
    • By where are we 14th Mar 17, 6:17 PM
    • 145 Posts
    • 45 Thanks
    where are we
    • #5
    • 14th Mar 17, 6:17 PM
    • #5
    • 14th Mar 17, 6:17 PM
    You only earn 3% interest on balances up to £3000 - more than this and you earn 0% on the amount above £3000. "Skim" off the excess each month and put it in another account which pays interest. You should get about £7.54 interest each month which will vary depending on the length of the month. Tesco are unusual in that they pay out interest on the anniversary of opening the account rather than at the beginning of each month, so remember this date.
    • grumbler
    • By grumbler 14th Mar 17, 6:37 PM
    • 51,388 Posts
    • 21,755 Thanks
    grumbler
    • #6
    • 14th Mar 17, 6:37 PM
    • #6
    • 14th Mar 17, 6:37 PM
    "Skim" off the excess each month and put it in another account which pays interest.
    Originally posted by where are we
    If another account pays the same 3%, you'll get whopping extra 0.045% on £3K, i.e. ~£1.35 over a year.
    We are born naked, wet and hungry...Then things get worse.

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
    • mgdavid
    • By mgdavid 14th Mar 17, 8:54 PM
    • 5,172 Posts
    • 4,343 Thanks
    mgdavid
    • #7
    • 14th Mar 17, 8:54 PM
    • #7
    • 14th Mar 17, 8:54 PM
    Managed to sign up for a current account with Tesco .........
    Originally posted by newuser78
    but didn't bother to read the Ts & Cs you've agreed and signed up to....
    A salary slave no more.....
    • cheesetoast
    • By cheesetoast 15th Mar 17, 6:29 PM
    • 246 Posts
    • 162 Thanks
    cheesetoast
    • #8
    • 15th Mar 17, 6:29 PM
    • #8
    • 15th Mar 17, 6:29 PM
    If I remember rightly Lloyds Club a/c t&cs were worded in such a way that it sounded as if you had over £5K in the account you would receive nothing! I even queried that fact- badly expressed.
    Originally posted by Katiehound
    Indeed - the statement made it very unclear:

    • newuser78
    • By newuser78 15th Mar 17, 11:53 PM
    • 177 Posts
    • 34 Thanks
    newuser78
    • #9
    • 15th Mar 17, 11:53 PM
    • #9
    • 15th Mar 17, 11:53 PM
    but didn't bother to read the Ts & Cs you've agreed and signed up to....
    Originally posted by mgdavid
    Did you get out of the wrong side of bed?

    I did read the T&Cs but it was the wording that confused me. Some accounts stop paying interesting if you go over X, and some will continue to pay interest on X. So both eskbanker and Katiehound are correct.
    • eskbanker
    • By eskbanker 16th Mar 17, 12:00 AM
    • 5,005 Posts
    • 4,756 Thanks
    eskbanker
    Some accounts stop paying interesting if you go over X, and some will continue to pay interest on X.
    Originally posted by newuser78
    I'm only aware of the latter model, which accounts fall into the former category?
    • grumbler
    • By grumbler 16th Mar 17, 1:02 AM
    • 51,388 Posts
    • 21,755 Thanks
    grumbler
    I did read the T&Cs but it was the wording that confused me. Some accounts stop paying interesting if you go over X, and some will continue to pay interest on X. So both eskbanker and Katiehound are correct.
    Originally posted by newuser78
    I have to say that Tesco's wording is extremely clear:
    What will you pay me when I have money in my account?
    If you have money in your account, we’ll pay the following interest on the first £3,000 of your balance, but you won’t get interest on any part of your balance over £3,000
    We are born naked, wet and hungry...Then things get worse.

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
    • xylophone
    • By xylophone 16th Mar 17, 1:42 AM
    • 21,994 Posts
    • 12,687 Thanks
    xylophone
    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.....
    • mgdavid
    • By mgdavid 16th Mar 17, 2:46 AM
    • 5,172 Posts
    • 4,343 Thanks
    mgdavid
    ........
    I did read the T&Cs but it was the wording that confused me. ..........
    Originally posted by newuser78

    which part of this confused you?

    "What will you pay me when I have money in my account?
    If you have money in your account, we’ll pay the following interest on the first £3,000 of your balance, but you won’t get interest on any part of your balance over £3,000"
    A salary slave no more.....
    • jimjames
    • By jimjames 16th Mar 17, 12:30 PM
    • 11,900 Posts
    • 10,283 Thanks
    jimjames
    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.....
    Originally posted by xylophone
    Or the offer when they reopen is substantially different to before. It would make sense to me that they include DD & payment requirement as per most other banks.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • teddysmum
    • By teddysmum 16th Mar 17, 1:20 PM
    • 7,876 Posts
    • 4,697 Thanks
    teddysmum
    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.....
    Originally posted by xylophone
    The promised 'next few weeks' is already over a month.
    • Katiehound
    • By Katiehound 16th Mar 17, 4:20 PM
    • 3,578 Posts
    • 36,165 Thanks
    Katiehound
    Or the offer when they reopen is substantially different to before. It would make sense to me that they include DD & payment requirement as per most other banks.
    Originally posted by jimjames
    When the offer first started, or at least when I joined there was indeed a minimum sum per month required........
    Being polite and pleasant doesn't cost anything!

    If you found my posting helpful please hit the "Thanks" button!
    Thank You
    • RG2015
    • By RG2015 16th Mar 17, 4:32 PM
    • 207 Posts
    • 74 Thanks
    RG2015
    Tesco bank must already have had an influx of millions on which they pay 3% but loan out at anything from 3.4% to 17.6% (based on the loan section of their website).

    This looks like good business to me even without DDs or a minimum monthly pay in.
    • where are we
    • By where are we 16th Mar 17, 5:16 PM
    • 145 Posts
    • 45 Thanks
    where are we
    "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? The benefit of dividend reinvestment in stocks and shares is well documented. There is an analogy between dividends and interest, in that both benefit from a compounding effect which gets better as time goes on. My OH and I skim over 20 accounts, usually on the second or third day of the month and it is also a check that "all is well" with these accounts. Of course you could set up a standing order to "skim" the interest.
    Over the years it all adds up!
    • jimjames
    • By jimjames 16th Mar 17, 5:41 PM
    • 11,900 Posts
    • 10,283 Thanks
    jimjames
    Tesco bank must already have had an influx of millions on which they pay 3% but loan out at anything from 3.4% to 17.6% (based on the loan section of their website).

    This looks like good business to me even without DDs or a minimum monthly pay in.
    Originally posted by RG2015
    I think you're being a bit blinkered. Have you looked beyond that page? I get 26 months interest free credit card, 1.3% mortgage.

    That doesn't look like such good business to me and a mortgage is generally a lot bigger than a loan.
    When the offer first started, or at least when I joined there was indeed a minimum sum per month required........
    Originally posted by Katiehound
    Only to avoid a fee. It wasn't a condition of getting interest as I recall.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • TheShape
    • By TheShape 16th Mar 17, 5:48 PM
    • 961 Posts
    • 703 Thanks
    TheShape
    Tesco bank must already have had an influx of millions on which they pay 3% but loan out at anything from 3.4% to 17.6% (based on the loan section of their website).

    This looks like good business to me even without DDs or a minimum monthly pay in.
    Originally posted by RG2015
    And lots of extra customers to market their other products to. Credit cards, loans, mortgages, insurance, travel money.
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