'Earn 6.5% plus £60 of Tesco Deals' article discussion area

pmorrison_2

Ive just signed up for this account, I dont have a clubcard but in the t&c's it says:

If you don't have a Clubcard you can simply apply for one online, pickup an application leaflet or simply agree that we can use your information to open one in your name.

I went through the application assuming it would sign me up for the account but at no time did it ask me if I wanted to open a Clubcard account - did anyone else get the option?

stphnstevey

Phoned Tesco Cust Services - Will get pts if previously had a savings account or currently have a Tesco Clubcard Plus Account.

£60 deals vouchers is an extra 0.6% (on £10K), making it almost as good as the 7.2% ICICI fixed rate (6.5% + 0.6% = 7.1%), but with instant access.

Backed by RBS, so some might consider a little safer than ICICI

The_Miser

inkypinky999 wrote: »

if I open the joint account in name of my wife and as she is not working and not paying tax, will the interest on our joint savings not incur any tax or am doing something wrong here.
is it legal?

Normally Tesco will deduct tax at about 20% at source. However, most financial institutions will supply you with a simple form in which the account holder makes a declaration that he/she is not liable for tax and thereafter he/she is not taxed on interest by that financial institution. Check with Tesco if they comply with that industry norm (which seems to be accepted by the taxman).

Tesco is only interested in the identity of the account holder and, if they act like any other similar institution, will deduct by direct debit from the account which INCLUDES the name of their customer (it could be a sole or joint account) or accept a cheque drawn on such an account. Your wife should be asked for identification documents when opening the account.

Check on inheritance tax etc. - this whole area has many complex issues which could (but probably won't) arise.

Be very aware that:

- your wife MUST declare to the taxman even if she goes even one penny over her tax-free allowance or they can get very nasty. The fact that she is not working is not relevant; she could be getting a pension plus dividends plus all sorts of other legitimate income and it is her income from all sources which interests the taxman.

- theoretically the clubcard points are a benefit and therefore taxable (subject to the previous paragraph):eek::eek:. How the taxman looks at this is his affair and there exist freephone numbers to their helpdesks.

an aside:
- if you have joint income (interest, dividends etc.) the general rule is that such income is split 50:50 for tax purposes - if you have other income (salary perhaps) you could be taxed at 20% or 40% on half whilst she is taxed at 0%. There could be cases (which the taxman would have to agree to) where income is not split equally.

NOTE: always get qualified advice on tax etc., never from internet wallahs

ginvzt

I have received the papers to sign for the Tesco account. There was also included Direct debit set up page. In one of the notes it says that if I want to pay in additional funds, I would need to set up direct debit or standing order. I suppose these would be for regular amounts, but if I want to transfer one off sum of money, I don't really need to set up a direct debit, so I? Sorry for a daft question...

YorkshireBoy

ginvzt wrote: »

I don't really need to set up a direct debit, so I?

No, although a DD mandate can be useful if the sending account doesn't do faster payments, and it's a high interest current account (and they are 'low' value transactions).

HGLTsuperstar

Signed up, got the paperwork and returned it along with the opening cheque - not heard anything since. Obviously they're up to their eyes in new account paperwork but how long will it take to get the online access so can transfer in the money before the clubcard cut-off date?

isofa

HGLTsuperstar wrote: »

Signed up, got the paperwork and returned it along with the opening cheque - not heard anything since. Obviously they're up to their eyes in new account paperwork but how long will it take to get the online access so can transfer in the money before the clubcard cut-off date?

You'll get a confirmation with your account details in the post next, then you have to sign up to internet banking and post yet another form, it seems a very slow and untidy process in my experience. Why can't it be one form, sign and open?

leaphaze

I notice that you're given several account options: Internet Saver; Instant Access Monthly; Instant Access Annual Interest. Do they all offer the clubcard points deal?

anna42hmr

isofa wrote: »

You'll get a confirmation with your account details in the post next, then you have to sign up to internet banking and post yet another form, it seems a very slow and untidy process in my experience. Why can't it be one form, sign and open?

i know, it does seem long winded doesnt it, especially as they are not quick at processing the account openings, i applied to open it on 14th october, sent the cheque and forms they to you which i posted back on the 18th, and nothing heard since!

HGLTsuperstar

Got the confirmation today so now awaiting the internet set-up; but the BA miles make it worth while.