Unexpected letter from Tesco... closing my DD account

Dizzee_Rebel

Hi all,

I opened a Tesco Internet Saver around a year ago, the same time as switched from Barclays to Halifax for the reward & to use Tesco as one of the direct debits. I manually pull a pound each month via Pay Pal for the other DD.

Two months ago I opened a Club Lloyds Account, set Tesco to pull a pound from this, aswell as Halifax on the same day & I use Pay Pal as the other.

Just come home from work & received this letter:

"We, Tesco Bank have recently undertaken a review of the banking arrangements that you have with us. We have, with regret, reached the conclusion that we will no longer provide these facilities for you.

Consequently, you will need to make alternative arrangements within 30 days of the date of this letter.

Unfortunately, we will not be able to provide references for you.

If you have not made alternative arrangements within 30 days of the date of this letter, then any credit balance remaining in you account will be returned to you in the form of a cheque.

We assure you we only reached this decision after careful consideration."

Anyone received anything similar? Or know of any other savings accounts that I could use for the other DD.

Thanks.

MARTYM8`

Scottish Widows allow direct debits for their internet saver account - although they may request a bank statement as evidence for the debited account.

http://www.scottishwidows.co.uk/bank/savings/internet_saver_account_apply.htm

Monmouthshire BS also do DDs for their regular savers - but you need to be an existing customer or live in south Wales. There is a discussion forum here but the options are becoming more limited.

https://forums.moneysavingexpert.com/discussion/4168667

I think Tesco may have had an issue with your £1 transactions - most genuine savers save more than £1 a month! It costs them to administer the account and probably felt they weren't making a profit out of you.

planteria

can only assume that Marty is right.. i put several £10DDs into my TIS, and transfer back out when it suits me to.

Ed-1

Dizzee_Rebel wrote: »

Hi all,

I opened a Tesco Internet Saver around a year ago, the same time as switched from Barclays to Halifax for the reward & to use Tesco as one of the direct debits. I manually pull a pound each month via Pay Pal for the other DD.

Two months ago I opened a Club Lloyds Account, set Tesco to pull a pound from this, aswell as Halifax on the same day & I use Pay Pal as the other.

Just come home from work & received this letter:

"We, Tesco Bank have recently undertaken a review of the banking arrangements that you have with us. We have, with regret, reached the conclusion that we will no longer provide these facilities for you.

Consequently, you will need to make alternative arrangements within 30 days of the date of this letter.

Unfortunately, we will not be able to provide references for you.

If you have not made alternative arrangements within 30 days of the date of this letter, then any credit balance remaining in you account will be returned to you in the form of a cheque.

We assure you we only reached this decision after careful consideration."

Anyone received anything similar? Or know of any other savings accounts that I could use for the other DD.

Thanks.

Do you have a current account with them?

What date is the letter dated?

Dizzee_Rebel

No current account, dated 3rd June

Sea_Shell

Interesting. I've had my tesco account for 3 months at just £1, might up that a bit. Finger in the air as to what amount would be okay with them and seem "genuine " savings, £10 maybe?

Dizzee_Rebel

I very rarly log into the account, don't bother pulling the £1 back out, probably around £14 in there now.

YorkshireBoy

2 current accounts, both always kept at £2,9xx
1 credit card, managed well
2 savings accounts, neither of which sees £1 DDs (mine range from £3 to £9)
1 savings account with a 5 figure balance and no DDs

Hopefully I'm under their radar!

[Deleted User]

My guess is they're realising people are using them for £1 DDs that are costing them!

Dizzee_Rebel

MARTYM8` wrote: »

Scottish Widows allow direct debits for their internet saver account

Monmouthshire BS also do DDs for their regular savers.

Do you know if either allow multiple accounts to be linked, ie pulling from both Lloyds & Halifax?

YorkshireBoy

Dizzee_Rebel wrote: »

Do you know if either allow multiple accounts to be linked, ie pulling from both Lloyds & Halifax?

https://forums.moneysavingexpert.com/discussion/5126573

See also the thread referenced in the OP