Who underwrites tesco/Are tesco a 'bank?

butler_helen

Hi all,

I'm hoping this is a simple question but one I don't know what to google for...

We are after a simple savings account to build up some cash for new stuff for our house, so a tesco savings account seems like a good plan (we can pay cheques/cash in by just walking over the road )

However... my boyfriend keeps asking whether 'tesco are a bank', who 'underwrites tesco'.

I said it was RBS for all credit facilities and for a savings account they manage themselves - is this right? or does someone provide their savings too?

If anyone thinks we're making a bad move with a tesco saving account please shout up too - we're aiming for 10k in a year.

XHelen

opinions4u

Tesco Personal Finance is a bank 100% owned by the supermarket.

It used to be a 50/50 venture with RBS, but Tesco took full control at the end of last year.

RBS still provide some of the administrative support for maintaining accounts etc.

The savings account is fine for easy access, but the underlying rate (without bonus) is only 1.25% (rising to 3% with bonus). You should review your rate regularly and if necessary be prepared to move to a provider paying a better rate.

www.moneyfacts.co.uk shows The AA paying 3.15%, Citibank at 3.30% (although stories of poor service exist) and Birmingham Midshires at 3.15% for a telephone account.

butler_helen

thank you!