Tesco Internet Saver - What Bonus?

uk1

I'm confused about the marketing material I'm receiving from Tesco. I have an account that was opened in September last year. I understand that the interest rate was variable but I understood the bonus was fixed for a year at 1.5%.

They have just written to me saying that to thank me my bonus rate will be "a brand new bonus rate" from 1st July of 0.75%.

I have two questions.

I cannot find anywhere on the Tesco site either confirmation of the interest rates and bonus I should be receiving. Anyone able to point me?

Also - I thought the bonus rate of 1.5% was to a later date. Anyoneelse sheld light on this?

Thanks.

caveat_emptor

Now I'm confused as when I signed-up the bonus was 1.5% and this was guaranteed for 12 months. Tesco website says current savings rate is 2.25% (this was also news to me) including 1% bonus. I'll be moving my account PDQ.

Sparky47

The underlying rate has gradually been reduced and now stands at 1.25%.
In addition there is a bonus payable for the first 12 months which is currently 1%, hence the 2.25% advertised on their site.

Last year the bonus was 1.5% so you should be getting 2.75% in total, but I dont know why they are offering you a new bonus rate from July if you opened your account in September.

I have not received a similar letter so I guess you will have to ring them.

colin79666

You get the bonus that you agreed to when you signed up. They chop and change the bonus frequently for new customers.
In fact they have recently been sending me letters when they have changed the base interest rates and stating that I am indeed getting the 1.5% bonus that was in place when I signed up last year

withnell

caveat_emptor wrote: »

Now I'm confused as when I signed-up the bonus was 1.5% and this was guaranteed for 12 months. Tesco website says current savings rate is 2.25% (this was also news to me) including 1% bonus. I'll be moving my account PDQ.

I suggest you don't open an ING account then - they've changed the fixed bonus rate about 5 times this year already!

D1zzy

If you signed up for 1.5% bonus you should still have it - I think it dropped to 1% for new accounts in Jan. Your rate should be 2.75%

Jake'sGran

If you want guaranteed rates in these times I think it is best if you opt for bonds.
I got some really good rates when I did this last year but they are all maturing now and I am fed up looking for good fixed rates again. Just had a look at Stroud and Swindon and their rates look good but I think you may need £1000 -but not sure. Unfortunately, I did manage to get in with West Brom for something like 4% but I know it's safe and savings accounts will probably be
bought by another institution.

uk1

I think what may have happened was that I opened the account in around July 08 but only put funds into it later on.

It is interesting in the twilight world that is Tesco, that they say that to "thank me for my loyalty" they are "going to reward me" with 0.25% less than any other customer.

I cannot see anything in the terms and conditions that says the new bonus of 1% is only for new customers. Can anyone else?

jem16

uk1 wrote: »

I think what may have happened was that I opened the account in around July 08 but only put funds into it later on.

That's it exactly. My account was opened at the end of June 08. I have also received the letter with the new bonus.

Tesco have done what they said they would with the bonus for one year. They didn't have to offer another bonus - most accounts I have seen with a bonus simply drop it after a year.

I cannot see anything in the terms and conditions that says the new bonus of 1% is only for new customers. Can anyone else?

Bonus Details
Open a Tesco Internet Saver Account and earn 1% bonus interest on balances up to £100,000 for 12 months.

Accounts with balances above this will receive the standard underlying rate (currently 1.25% Gross / AER) on the amount above £100,000. New customers only. Only one account per person is eligible for the bonus.
Following the end of the bonus period the rate will revert to the standard underlying rate (currently 1.25% Gross / AER).

YorkshireBoy

jem16 wrote: »

Only one account per person is eligible for the bonus.

That's interesting because I have 2 of the original Internet Savers and both have paid out a 1.5% bonus in March this year.

The first was opened in July last year, and the second in October last year for the clubcard points deal*. I do remember the T&C's were changed slightly (including the above statement), but seem to recall this was done after I applied for the second account.

I've received the letter you refer to today but I'm planning on shifting the balance of my original account to the second one next month (via FP's to an external FP enabled account and back again) and hope to enjoy an additional 1.5% bonus for a few months.


* For which they paid me 2 lots of £15 vouchers (worth £120 in 'deals' )