Is Tesco misselling its online savings account?

Shteve0

Sorry chaps, thought you may be able to help. Tesco's website (http://www.tescofinance.com/personal/finance/savings/savingsaccounts/internetsaver/summary-box.html) clearly states that their internet saver pays a "flat rate" of 6.00%, but when I called up to run this through with them I was told, and I quote, "No, no, there's nothing flat about it, our rate goes down on January 8".

My understanding was that "flat rate" is a specific term describing a pretty specific application of interest rates and is not interchangeable with the term "variable rate".

Is this misselling or acceptably ambiguous language?

Thanks

Steve

Pendle_Gazza

I would term "flat" rate as one without bonuses - i.e. the same for everyone at all times - but that does not mean it isn't "variable". In that case, they would call it "fixed".

YorkshireBoy

Flat rate means one that has no interest 'tiers', ie it's 6% for £1 upwards, not:

£1-£1,000...........2%
£1,001-£10,000....3%
£10,001 upwards...6%

Gwhiz

You are confusing "flat" rate with "fixed" rate.

Shteve0

Apologies, thanks for your help. :money: