Tesco Internet Saver - Rate increase

Steve_xx

Tesco will increase the interest rate on its Internet Saver account from Monday 17 August:

The bonus, not the variable rate, will increase by 0.75% on balances between £1 - £100,000. The underlying interest rate remains at 1.25%, but added to this is a bonus of 1.75% which is payable for the first 12 months after the account is opened, bringing the total interest rate to 3%.

Note: It is unclear to me whether existing holders of this account will see their bonus rate increased or whether this new rate will only be available to those opening new accounts.

Link: Click here

ctdctd

Tesco site not updated when I looked, but the current underlying rate is 1.25% and not 1.75% as above.

If this remains the same, total rate would be 3% with bonus.

nzseries1

Where did you see this please - could we have a reliable source.

The link you have linked to says nothing about a rate increase nor an increase in the bonus.

mm79_2

Here's the linky - https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=188338

Moneyfacts are a reliable source IMO.

As OP noted, no mention of how this affects existing accounts though...

TomsMom

Steve_xx wrote: »

Tesco will increase the interest rate on its Internet Saver account from Monday 17 August:

The bonus, not the variable rate, will increase by 0.75% on balances between £1 - £100,000. The underlying interest rate remains at 1.25%, but added to this is a bonus of 1.75% which is payable for the first 12 months after the account is opened, bringing the total interest rate to 3%.

Note: It is unclear to me whether existing holders of this account will see their bonus rate increased or whether this new rate will only be available to those opening new accounts.

Please note that at the time (Friday Aug 14) of writing that the following link shows the current, lower rate for the account

Link: Click here

ctdctd wrote: »

Tesco site not updated when I looked, but the current underlying rate is 1.25% and not 1.75% as above.

If this remains the same, total rate would be 3% with bonus.

ctdctd - Steve hasn't said the underlying rate is 1.75%, he said the underlying rate is 1.25% and the bonus is being increased to 1.75%.

Hopefully this is for existing accounts, if so I will move my money back that I recently transferred elsewhere (except for about £10 to keep it open).

apt

The original post did originally say 1.75% but was corrected. For most people the EGG 3.25% offer will be a better option, but Tesco has the advantage of being able to make faster payments from the account.

malik999

> Note: It is unclear to me whether existing holders of this account will see their bonus rate increased or whether this new rate will only be available to those opening new accounts.

I dont know if it was just bad interest rate timing but Tesco really disappointed me.
They had a really good high paying internet account everyone rushed to open it. I went to a lot of trouble with paperwork opening mine. It seemed not long after i opened the interest rate dropped right down and before i knew it there were several better accounts available. I wish Tesco could have done more.

treecity

Will be interesting to see if this applies to existing accounts. I very much doubt it will...

cash-magnet

treecity wrote: »

Will be interesting to see if this applies to existing accounts. I very much doubt it will...

Then the old customers will just draw out their money and move it. I know that's exactly what I did to the tune of £15000. I have kept the account open as it may still have a use one day and having a rarely used savings account has no impact against you.

treecity

cash-magnet wrote: »

Then the old customers will just draw out their money and move it. I know that's exactly what I did to the tune of £15000. I have kept the account open as it may still have a use one day and having a rarely used savings account has no impact against you.

Totally agree but I am fed up opening and closing accounts... it's driving me mad! I will close my account if the rate is only for new accounts but I will move my money to Egg instead.

The problem with keeping the account open is that you won't get your interest until the 1st anniversary of opening the account so closing is the only sensible option, IMO.

EalingSaver

Interesting to see if apply to existing account holders. I fell off bonus (account was close to 3% as I recall) about 4 weeks or so ago. They wrote to me in advance saying they would give me an additional bonus bringing the rate up to 2%. Shortly after, they were offerring new customers 2.25 or whatever it was. I phoned them to aks/insist they raise the rate on mine to match. They wouldn't. Have been gradually moving money out since; haven't moved it all as currently have bigger problem of house sale proceeds to stuff into a number of accounts. But funnily enough was this evening about to move the last of it...I will wait to see what happens. Pity: as an actual account to operate it is one of the best there is: their FP is superb; when coupled with my FD current account I can't move between IE windows and hit 'refresh balances' fast enough to catch it out....