Tesco 'Easy Access' disaster

maplewood2

Having opened many savings accounts in the last 12 months in the eternal search for best paying easy access savings accounts, I have to delare that the Tesco offering operated by RBS is the most bizarre to date.

Open account online; receive an application pack in the post with a form to sign and return with your opening cheque; wait two weeks for the cheque to clear; wait to receive your account details in the post; login to the website, print out a signature slip; post it to them; after this signature slip is received they enable your internet access; they send you a validation code to activate the online access.

You can't check your balance or access the account until this ridiculous process has completed.

Now - try and pay some money in. You cant pay in by CHAPS, only by BACS, faster payments online or cheque, even though there is no warning that this banking / savings account defies all normal operation compared to any other savings / banking account in the UK and there is no CHAPS access. An attempt to pay in by CHAPS is rejected - error:no such account - but without any further indication that CHAPS is not accepted.

If you want to transfer any money from your account at another bank you have to manually download and print out a DD form and post it back to them and wait 22 days for processing. You can only do this after your account has been finally 'opened' and you can log in online. They only use 'faster processing' and the limit is £10K per day, so to transfer a full account of £100K you would have to schedule 10 x £10K daily transfers over 2 weeks - that is not 'easy access'.

If you want to make a payment - you cant unless you have a card and a card reader. You have to request a card and a reader which can take over 3 weeks to arrive (so far) and then go through an "enable card reader" procedure.

Please be aware of these excessive restrictions and completely unreal procedures to access your money.

johnbfan

I had problems with this account as well. Have had a Tesco credit card for a few years and am on line with it. Opened the savers account and tried to organise this on line as well and couldn't - apparently because I was already on line I couldnt do this on line!!! Tesco found out that although I was an online customer I could not add new accounts to my current online facility. They have sorted it out now but it took over a month!!!

maplewood2

Ive just spoken to them again, and now ive been told that I can remove up to £50K from the account but only using their telephone service, which may or may not be set up at the same time as the online account.

I have just checked the T&C and it states:
Withdrawals/ Money Out

15.Withdrawals from the Account may only be requested by using the Online Service.

Which is in direct contradiction to the information I was given this morning.
I was also told that the restrictions on how much you can pay in and take out via FP and BACS is stated in the T&C - this is not the case there is no detail on amounts in the T&C.

I was also told that information re the no CHAPS payments is contained within the T&C - this is not the case either.

I would describe the operation of this account by RBS on behalf of Tesco as Shambolic, and wonder how on earth it can possibly have been approved by the FSA.

MimiJane

I think you'll find that Tesco Finance is owned purely by Tesco PLC now, after they bought out RBS ... or it will be soon.

YorkshireBoy

maplewood2 wrote: »

I was also told that information re the no CHAPS payments is contained within the T&C - this is not the case either.

http://www.tescofinance.com/personal/finance/savings/savingsaccounts/terms-and-conditions.html

Section C, conditions 18 & 20 detail the acceptable methods of depositing funds for both the initial and subsequent deposits, and CHAPS is not one of them.

jem16

maplewood2 wrote: »

If you want to transfer any money from your account at another bank you have to manually download and print out a DD form and post it back to them and wait 22 days for processing.

No need to do this at all. Simply initiate the transfer from the other bank. If the other bank uses faster payments it will be in your Tesco account instantly.

You can only do this after your account has been finally 'opened' and you can log in online.

You could have transferred it using above method as soon as you knew your account number and sort code.

They only use 'faster processing' and the limit is £10K per day, so to transfer a full account of £100K you would have to schedule 10 x £10K daily transfers over 2 weeks - that is not 'easy access'.

Most banks have a daily limit of £10k although some do have £15k.

If you want to make a payment - you cant unless you have a card and a card reader. You have to request a card and a reader which can take over 3 weeks to arrive (so far) and then go through an "enable card reader" procedure.

Whilst you are waiting they will accept phone withdrawals.

Nomad25

OP, I can totally empathise. Whole set up is an inefficient shambles. I wrote [had to vent my spleen] a stinking letter to the new [old top cheese still showing on their standard letters] chief.

Trouble is, I think, they've jumped into this area with no decent admin.

:rotfl:Mind you, neither has the rest of the company, still waiting after 3 months for replacement clubcard.

maplewood2

jem16 wrote: »

No need to do this at all. Simply initiate the transfer from the other bank. If the other bank uses faster payments it will be in your Tesco account instantly.
You could have transferred it using above method as soon as you knew your account number and sort code.

But only for £10K per day.

After my initial cheque had cleared I did make a payment from the other bank - by CHAPS!! This was then rejected but I didn't know it had been rejected because I was waiting for my online access and couldn't 'see' the account. Yes I could have checked by phone but if I wanted a telephone account I would have opened one!! In the meantime the 'other' bank had lost track of the payment for 19 days and I ended up with £100's in lost interest, which is of course another story.
Why didnt the CHAPS rejection include a valid reason? Why arent the maximum amounts transferable made clear to the consumer? One bank does this, another bank does that - it is farcical, and seems to be hit or miss.
Why doesnt the T&C expressly state that the institution cannot accept or process CHAPS payments, which is generally a standard method of transfer. OK so they dont say they do, but they dont say they dont either - the normal expectation is that they would so they should state clearly for the avoidance of doubt, unless of course it is a mickey mouse bank.

The account opening procedure should be documented in advance so that the consumer knows what she can and cant do, at what stages, and specifying what needs to be done to accomplish each part of the service if it is to be so fragmented.

Only then can the consumer make a rational and informed decision on the competitive benefits or otherwise of utilising a particular service from a provider. Trade descriptions?
Anyway, Christmas Eve beckons. I will be claiming my compensation in the new year.

mickW_2

I tries to open an email account 2 -3 months ago and sent off a cheque with application form. 4 weeks later when I expected the account to be open they wrote saying I needed to prove ID as their check was unable to confirm this. Bearing in mond they had my cheque (still not cashed) and the money was sitting in my bank getting nil interest. I rang them to be told I would have to wait until the matter was dealt withy by letter. In the end I cancelled the cheque and told them where to stick their 6.51% account (which incidentally is now a 5% account). I opened e-mail accounts with other banks no problems at all. Tesco were Pathetic.

maplewood2 wrote: »

Having opened many savings accounts in the last 12 months in the eternal search for best paying easy access savings accounts, I have to delare that the Tesco offering operated by RBS is the most bizarre to date.

Open account online; receive an application pack in the post with a form to sign and return with your opening cheque; wait two weeks for the cheque to clear; wait to receive your account details in the post; login to the website, print out a signature slip; post it to them; after this signature slip is received they enable your internet access; they send you a validation code to activate the online access.

You can't check your balance or access the account until this ridiculous process has completed.

Now - try and pay some money in. You cant pay in by CHAPS, only by BACS, faster payments online or cheque, even though there is no warning that this banking / savings account defies all normal operation compared to any other savings / banking account in the UK and there is no CHAPS access. An attempt to pay in by CHAPS is rejected - error:no such account - but without any further indication that CHAPS is not accepted.

If you want to transfer any money from your account at another bank you have to manually download and print out a DD form and post it back to them and wait 22 days for processing. You can only do this after your account has been finally 'opened' and you can log in online. They only use 'faster processing' and the limit is £10K per day, so to transfer a full account of £100K you would have to schedule 10 x £10K daily transfers over 2 weeks - that is not 'easy access'.

If you want to make a payment - you cant unless you have a card and a card reader. You have to request a card and a reader which can take over 3 weeks to arrive (so far) and then go through an "enable card reader" procedure.

Please be aware of these excessive restrictions and completely unreal procedures to access your money.

sheslookinhot

In a word, would you recommend this account ? I have just had an account opened, but may not bother using it.

jem16

mickW wrote: »

In the end I cancelled the cheque and told them where to stick their 6.51% account (which incidentally is now a 5% account).

It's still at 6%. On 8th January it drops to 5.1%.

Considering most instant access accounts are around 2% it's still a good deal.