MSE News: What counts as a month? Check with your bank or you could be hit with fines

LittleVoice

We should also acknowledge that the penalty ("fine" in MSE Towers) may well be not receiving interest on a positive balance unless the minimum amount is paid into an account.

Thrugelmir

Pincher wrote: »

If a company can't make better than 3% return on capital, they should just give the money back to the shareholders, and close up shop.

That's not how banks (historically and in the future) made\make their money. The credit boom years are something of a distortion due to the nature of banks selling activities. Where cross selling of products led to loss leaders. Banking will become more competitive however personal account services have to be paid for. So the market will undergo fundamental change. The new banks aren't carrying the baggage of the old ones.

Porcupine

This could be messy for people who pay their salary into the account. For example, some employers do their payroll on the Monday before the last Tuesday of the month, or some such rule.

If the month ends on Mon 30th, they get paid on Mon 23rd. Next month payroll time is Mon 28th. If their statement period is, say, 26th to 25th inclusive, then they'll miss a payment within that window. That means they're paying in a regular salary but get penalised for it.

zerog

Tesco is definitely losing money on my account. I've already used it to make debit card payments totalling over £40000, generating 5000+ clubcard points

Furthermore it must cost them something to send a text, which they need to do every time I log in

Shame that paying your credit card bill (with the debit card) doesn't get points, but otherwise it would be too easy to pay into certain savings accounts and withdraw it straight back out

colsten

My guess is that it won't be very long until the new Tesco CEO will put the lid on any unprofitable business in the Tesco Group. Whether Tesco Bank falls into this category remains to be seen - it is not an immediate concern for Tesco. A few unprofitable accounts like yours and mine might not even show on the radar.

Pincher

I have to say that I appear to be getting 3% interest on £20,000 on the Santander 123 account, and what seems to be 8% dividend for Santander shares, and the whole thing suggests that Santander must be dealing in drugs, if they are only making 3% return on capital.

polymaff

Porcupine wrote: »

This could be messy for people who pay their salary into the account. For example, some employers do their payroll on the Monday before the last Tuesday of the month, or some such rule.

It IS messy. My pension is paid on the basis of "you'll always be able to access your pension on the first of the month" which means that some calendar months I receive two payments, some months I receive none.

Glad to see MSE catching up with a topic I've been banging on about for a while.