Tesco Online Bank Account Beware

Archi_Bald

cpa541 wrote: »

Yes, you get 1.4% gross (for one year with their bonus). I first saw it on this very MSE site.

If you opened the account today, your interest rate is 1.35%. Doesn't matter that it was 1.4% a little while ago.

cpa541 wrote: »

The direct debit problem is a product of the confusing Tesco's online application system. There appeared to be no option of a bank transfer (which I prefer). It's when I tried to withdraw a "test" £1.00 that I discovered the immediate access problem for new accounts.

The Tesco online application system is not confusing. There is no direct debit "problem". There is just an impressive flexibility of payment methods that most other savings accounts do not offer. Perhaps this overwhelms some people at first.

There is a very easy option for "bank transfer" - you just make a faster payment from your current account to your Tesco savings account which has a sort code and account number and can receive faster payments.

As it happens, I have just transferred some money from my 123 to one of my Tesco savers - arrived in seconds. I could also have pulled it from Tesco via the DD mandate I have set up there for my 123, but like you, I sometimes prefer FPs to DDs.

The 9-day block must be for entirely new Tesco banking customers - once you have your online access, you can add new savings accounts and have instant and full online access to them.

cpa541 wrote: »

Thanks for info re BoS but two accounts (a brace) and two DD's is four hoops too many.

Chor, how lazy can you get. But each to their own.

badger09

No DDs required for a brace, or even a trio of BoS Vantage accounts and all can be cross funded by internal SOs for absolutely minimal effort. 3% on up to £15k in sole accounts

However if OP prefers 1.35%, that's his/her prerogative

robotrobo

cpa541 wrote: »

Yes, I understand the security issue with the DD route and the possibility of the "clawback" by my bank. I was therefore surprised when completing the online application that Tesco appeared to be pushing me towards Direct Debits.
If anyone else has opened an account with them I would be interested to hear your comments.

I opened a current account this week with I must say help from these guys on here,& while I'm not the sharpest knife in the drawer ,looking back it's been straight forward .
£3k £750 in , next day same out to bank of origin.
Thanks guys