Tesco/aa savings: Are they likely to drop?

jjlothin

Virgin have kindly informed me that my savings account with them is going to drop from 1.41% gross to 1.21% gross as of 26 January.


I'm trying to sort out my money strategy and will still need an account of this kind - i.e. easy access.


Just wondered if anyone had heard whether the Tesco's Internet Saver or AA Savings, both currently at 1.40% gross, are also likely to be about to take a plunge? No point in jumping out of the frying pan, after all!

colsten

Nobody has a crystal ball so your guess is as good as anyone's. Worth noting both have bonus rates which last just 1 year.

Have you maxed out the interest paying current accounts?

jjlothin

Thanks for the speedy reply, colsten - I was just wondering if any current Tesco's/AA customers might have been informed, as I was by Virgin, that a drop was imminent.


I'm currently trying to get my head round setting up, in addition, an interest-paying current account ...

Rollinghome

Your guess is as good as anyone's on Tesco, but AA/Saga/Birmingham Midshires tend to bring out a new issue and leave the rate for the previous issue unchanged for a good while.

jjlothin

Many thanks, RollingHome! I've just had a look on the AA site to see if I could work out when the current issue came out, but it doesn't seem obvious ...

jimjames

jjlothin wrote: »

Thanks for the speedy reply, colsten - I was just wondering if any current Tesco's/AA customers might have been informed, as I was by Virgin, that a drop was imminent.


I'm currently trying to get my head round setting up, in addition, an interest-paying current account ...

Depending on your amounts you may not need it in addition.

You can get 5% on £4500 with current accounts, that's way better than the accounts you've mentioned.

jjlothin

Well, I reckon I'll have £8k or £9k I'll still need to place, and I don't think I've got the financial nous to manage yet another current account! I'm a little concerned as it is as to the effect on my credit rating, as it looks like I'll need to open 3 new accounts in the next few days ...

Rollinghome

jjlothin wrote: »

Many thanks, RollingHome! I've just had a look on the AA site to see if I could work out when the current issue came out, but it doesn't seem obvious ...

AA Internet Extra issue 16 was apparently launched 29 Aug 2014. But I see the 0.90% bonus is fixed for 12 months and there's not much scope to reduce the remaining 0.50%. On their past form I'd be very surprised if there was any change other than the ending of the bonus.

That said, much the more profitable way to go is to use interest paying current accounts. They pay better interest and are far more convenient to use with more facilities. Which one (or more) to use mainly depends on how much you need to tuck away. Usually just as quick and easy to open as savings accounts.

YorkshireBoy

jjlothin wrote: »

Well, I reckon I'll have £8k or £9k I'll still need to place

Over and above the £20K at Santander (guesswork from your other thread)?

and I don't think I've got the financial nous to manage yet another current account!

It's not difficult, especially with accounts such as TSB, BoS, and Tesco (for small savers) where internal SOs take care of the monthly funding.

I'm a little concerned as it is as to the effect on my credit rating, as it looks like I'll need to open 3 new accounts in the next few days ...

Don't be (too much). I regularly open 4-5 accounts at a time. Indeed, I'm helping someone with account switching offers at the moment and they've just opened 8 current accounts (and a credit card!) since the first week in December. No refusals yet.

Just don't take any overdraft facilities if they're offered during the application process.

jjlothin

Many thanks both to RollingHome and Yorkshire Boy for all this useful advice. I'll get started with the Santander account and see how I get through that process, and then consider the other options ...

PeacefulWaters

I can only see a downward trend in savings rates.