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  • FIRST POST
    • newuser78
    • By newuser78 14th Mar 17, 12:53 PM
    • 177Posts
    • 34Thanks
    newuser78
    Tesco Current Bank Account
    • #1
    • 14th Mar 17, 12:53 PM
    Tesco Current Bank Account 14th Mar 17 at 12:53 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 2
    • RG2015
    • By RG2015 16th Mar 17, 5:07 PM
    • 50 Posts
    • 13 Thanks
    RG2015
    "And lots of extra customers to market their other products to. Credit cards, loans, mortgages, insurance, travel money."

    Not to mention loyalty to the little supermarket they also run to rack up clubcard points.
    • grumbler
    • By grumbler 16th Mar 17, 8:47 PM
    • 51,243 Posts
    • 21,653 Thanks
    grumbler
    "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?
    Originally posted by where are we
    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.
    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
    • pafpcg
    • By pafpcg 17th Mar 17, 8:43 AM
    • 121 Posts
    • 79 Thanks
    pafpcg
    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
    • By jimjames 17th Mar 17, 11:12 AM
    • 11,533 Posts
    • 9,759 Thanks
    jimjames
    In this particular case the benefit from doing this monthly, rather than yearly, is no more than £1.35.
    Originally posted by grumbler
    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
    • By grumbler 17th Mar 17, 5:50 PM
    • 51,243 Posts
    • 21,653 Thanks
    grumbler
    So will the amount of work.
    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
    • Joe_Bloggs
    • By Joe_Bloggs 18th Mar 17, 9:34 AM
    • 4,392 Posts
    • 1,551 Thanks
    Joe_Bloggs
    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.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
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