Tesco Savings - Check Your Interest Payments

Sisyphean_Task

I opened a savings account there with a 1.5% bonus in Jan 2009. When I received the documentation there was no mention of the bonus. I queried this and they said my application may have been too late but because I had noted the application reference number. I could prove I was in time because the number included the date. This number was on screen but never appeared in their documentation.

In March I received my interest payment for the year end. It obviously wasn't much because the account hadn't been open long. I checked the amount by calculating my interest per day in a spreadsheet. I was paid short so I queried it wondering if my 1.5% bonus had not been applied and set my calcualtions. They replied that I was correct and an extra payment would be added to my account. Which it was.

Recently they opened a 1.75% bonus so I opened one of those and closed the 1.5% transferring over all the money. Because the 1.5% account was closed I was paid the interest it had accumulated. You guessed it. The interest was short again. I sent Tesco my calculations and they have been writing to me for weeks saying they are looking into it.

Today I have received a letter saying I was correct and over £150 will be credited to my account. This is due to "Errors made by staff at Tesco Personal Finance whilst keying your bonus interest":

"No bonus 18th March to 31st March resulting in an underpayment of £20"
"No bonus interest applied August 2009 resulting in an underpayment of £115"
"No bonus interest applied September 2009 resulting in an underpayment of £22

So... how can this happen? Two years messed up. I assumed interest payments would be automated.

I would advise everyone to check their Tesco interest payments and I would be particularly concerned if I had opened a 1.5% bonus account early this year, that the bonus may not be applied at all.

In my spreadsheet I have columns for Date, Credit In, Credit Out, Balance, Interest Rate (noting changes), Interest Accrued that day then I total the days and deduct tax.

Obviously Tesco have sorted it out in the end and deserve credit for that but in my opinion missing interest payments is very unsatisfactory. I could imagine people less vigilant than me could be missing out.

Of course if Tesco did monthly interest there would not be a problem as people could check their interest payment easily each month. Pity Tesco don't do monthly interest isn't it?

noh

When they credit the interest to the account there should be two entries on the statement.
One for the basic interest amount labeled NET (if a taxpayer) and the other INTROBON.
If they haven't applied the bonus there will only be one entry.

Sisyphean_Task

On my statement for 31/3 it just said "INT to 31st March-NET"

Incidentally if anyone is going to calculate what their interest should be on the 1.5% bonus account these are the rate changes and dates:

When I opened the account it was 2.50 + 1.50 = 4.00
5/3/2009 1.75 + 1.50 = 3.25
16/4/2009 1.50 +1.50 = 3.00
28/5/2009 1.25 + 1.50 = 2.75

Sisyphean_Task

Thought I might just bump this thread for people with a Tesco bonus account.

With the various rate changes this year and if you have money going in and out, unless you calculate your own interest daily, you won't know if they have missed any interest payments at the end of the financial year.

Has anyone else closed a 1.5% bonus account to switch it to the 1.75% bonus. If so were you confident the interest payment added was correct when closing the 1.5%?

ben500

It's just the latest method that Tesco have discovered to loot the pockets of its customers, NEVER take anything as a given from Tesco.

lewroll

Hi there, I have one of these accounts. Could anyone tell me how to work out (in easy words!!!!) what interest I should be getting please? Sorry to say I have always assumed that the figures given to me by any financial institution would be spot on.

lewroll

Anyone able to help me?

Arthurian

It depends on the date when you opened your account. Was it an "Internet Saver" account? If so, this thread started by Steve_xx might help:-
http://forums.moneysavingexpert.com/showthread.html?t=1881699

Sisyphean_Task

lewroll,
Have you got access to an Excel spreadsheet?

sheslookinhot

I opened an account with bonus of 1.5% in January 2009. Am I right in thinking that interest with 1.5% bonus will be paid on anniversary of account opening or in March 2010.

Should I move account now to the new rate , or wait until 12 months ?

I am sure I received a letter recently, can't remember, but did it say they were moving my account automatically to new rate ?

lewroll

Sisyphean_Task wrote: »

lewroll,
Have you got access to an Excel spreadsheet?

Sorry not sure - where would I find it or how could I get it please?
Cheers