aa savings and tesco internet saver

ss4

I'm looking to open one of these accounts.

I know that tesco has faster payments out but the AA doesn't. Does anyone know how long it takes for the money to get transferred from the AA account to a current account?

I'm curious to know which bank provides the savings for the tesco internet saver account as I cannot find this information on their website.

Otherwise, has anyone had any problems with either of these that would cause me to steer clear of them?

jennifernil

I believe it is RBS at present.

I have had the Tesco account for over a year and find it works very well. Takes a few weeks to sort out a card reader, but you can still withdraw to your linked account meantime.

rb10

AA savings account to Halifax current account is two working days for me.

In the opposite direction it's instant.

atypical

Have you considered the A&L account? I asked if the account supported Faster Payments out (it definitely has them in) and was told it didn't. However I've made 2 out to NatWest, the limit seems to be £250.

jem16

rb10 wrote: »

In the opposite direction it's instant.

I assume you have set up a transfer from HBOS yourself as opposed to using the DD pull in from AA?

agsnu

ss4 wrote: »

I'm curious to know which bank provides the savings for the tesco internet saver account as I cannot find this information on their website.

Define "provides the savings". Tesco Financial Services (now branded "Tesco Bank") actually takes deposits itself (unlike the AA, where the deposits are with HBOS). It was originally a joint venture between RBS and Tesco, but Tesco bought out the RBS stake a while ago now. The systems for payments etc are made through RBS.

meggsy

"The deposit-taker for the AA savings accounts is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority".

ss4

agsnu wrote: »

Define "provides the savings". Tesco Financial Services (now branded "Tesco Bank") actually takes deposits itself (unlike the AA, where the deposits are with HBOS). It was originally a joint venture between RBS and Tesco, but Tesco bought out the RBS stake a while ago now. The systems for payments etc are made through RBS.

Oh, OK. I thought that normally a "big" bank takes the money and provides the service on behalf of tesco or aa or post office etc. I didn't know that tesco was the company holding your money.

ERICS_MUM

ss4 wrote: »

Oh, OK. I thought that normally a "big" bank takes the money and provides the service on behalf of tesco or aa or post office etc. I didn't know that tesco was the company holding your money.

If you open an account with Tesco then your contract is with them - they are authorised by the FSA to supply financial services and are covered by the financial services compensation scheme. They are liable to you for the money on your account.

In order for them to move money around from bank to bank, customer to customer, they need to use a clearing bank - currently RBS. RBS's responsiblities are to Tesco, not to you as a Tesco account holder. Tesco will manage the investment of account holders money with a variety of different banks or investment companies (UK and abroad as they choose), but again these other parties are responsible to Tesco, not to you.

Sorry if you know this already or if it's boring !!! (been in banking for 35 years, so find this stuff fascinating :eek:)

Linda xx

barak

ERICS_MUM wrote: »

...Sorry if you know this already or if it's boring !!! (been in banking for 35 years, so find this stuff fascinating)

Not at all boring! You have sensibly introduced the word 'clearing'. As you say, all savings institutions need a clearing bank.

There may be some confusion between the many savings institutions with or without their own banking licences and the relatively few clearing banks.

If I can count correctly, there seem to be only twelve clearing banks - including the Bank of England, one Building Society and two former Building Societies.

http://www.chequeandcredit.co.uk/membership/-/page/list_of_members/

There's plenty of other interesting information on that site.