Tesco Savings (Tesco Personal Finance Limited)

jw007

Was look for other safe savings accounts and came across Tesco Savings - Internet Saver which is paying 6.50% Gross / AER (which includes a 1.5% bonus for 12 months when you open an account). They provide details about the current £50,000 compensation limit covered by the Financial Service Compensation Scheme. But some digging in their help provided the following information which seems to suggest exposure to one or more Icelandic banks with the mention of the 'Icelandic scheme':

Question:

Will my money be safe in an online account?

Answer:

Tesco Personal Finance subscribes to the Banking Code. We will give you further details of the Banking Code when you open an account. You can obtain a full copy of the Banking Code by clicking the link.

Deposits made with Tesco Personal Finance are protected under the UK Financial Services Compensation Scheme (www.fscs.org.uk (new window)). Payments under this scheme are limited to 100% of the first £2000 of all your deposits with us, plus 90% of the next £33,000 of your total deposits with us, less any payments made under the Icelandic scheme. This means that the maximum claim amount as at September 2007 is £31,700.

http://tescofinance.metafaq.com/templates/tescofinance/main/answerPage?_mftvst:answerRef=%24http%3a%2f%2fapi.transversal.com%2fmfapi%2fobjectref%2fEntryStore%2fEntry%2fhttp%3a%2f%2fwww.metafaq.com%2fmfapi%2fMetafaq%2fClients%2ftescofinance%2fModules%2finternetSaverAcc%3a134492%3a2&_mftvst:groupID=%24savings&_mftvst:moduleID=%24internetSaverAcc&_mftvst:topicID=%24&id=RGNFJV9PCMP3H1D13K39QDHL5C)

Baldur

This has been discussed previously - look at the Terms & Conditions, not the stupid 'Ask a question' function on the site, which has obviously been copied & pasted by a poorly-trained member of staff.

noh

Baldur wrote: »

This has been discussed previously - look at the Terms & Conditions, not the stupid 'Ask a question' function on the site, which has obviously been copied & pasted by a poorly-trained member of staff.

Link here http://www.tescofinance.com/personal/finance/savings/savingsaccounts/important-info.html

jw007

Cheers for the info Baldur, I searched the forums but couldn't find a thread/post where this was 'discussed previously' - have you got a link???

As I confirmed in my original post I did read the T&Cs, but given the current situation I though the reference to the Icelandic scheme was an interesting point. Sorry it didn't interest you - will check with you first next time :rolleyes:

Baldur

jw007 wrote: »

Cheers for the info Baldur, I searched the forums but couldn't find a thread/post where this was 'discussed previously' - have you got a link???

Links:
http://forums.moneysavingexpert.com/showthread.html?p=14900641&highlight=tesco#post14900641

and post #8 et seq in the following thread:

http://forums.moneysavingexpert.com/showthread.html?p=14702329&highlight=tesco+savings#post14702329

<Edit> Paragraph 29 of the Ts & Cs is the relevant one, showing Tesco's FSA authorisation.