Confused about TSB plus account

ionakathryn

Hi so I think this offer sounds amazing - getting 5% interest is nice!
Anyway, I can understand that TSB customer service is awful. I went into the bank today and my queries didn't get answered - I was told the interest would be paid into my account every month. This seems too good to be true, no?

My plan was to put £2,000 straight into the account and continue adding £500/month. That would mean I can get £100/month from the bank...but then I was looking at an article MSE posted:
tsb-to-pay-5-interest-on-new-current-account--is-it-any-good (can't post link as I'm a new member but if you google you will find it!)

that says max interest earned per year is £78/year. I'm really confused!! Can someone please help?
Thanks :j

Thrugelmir

Interest is only paid on balances up to £2k.

You need to pay £500 into the account ever month to comply with the T&C's.

i_love_it

ionakathryn wrote: »

Hi so I think this offer

My plan was to put £2,000 straight into the account and continue adding £500/month. That would mean I can get £100/month from the bank...but then I was looking at an article MSE posted:
tsb-to-pay-5-interest-on-new-current-account--is-it-any-good (can't post link as I'm a new member but if you google you will find it!)

that says max interest earned per year is £78/year. I'm really confused!! Can someone please help?
Thanks :j

The 5% interest on £2000 in the current account will total £100 per year not per month - although it will be calculated monthly so £8 ish per month
Adding £500 per month is a requirement of the running of the account to qualify for its benefits
But leaving it there will not earn extra interest
You should open the regular saver associated with the account and deposit £250 per month into that
I think that is where the £78 interest figure is coming from as that is what you would earn in the year from the saver account
Otherwise the £78 figure could be the £100 interest on current account after tax
Which no longer applies after 6 April this year for most
Then move the excess £150 out from the current account

You can also earn £5 per month by spending £100 on the debit card
That is why I say move 150 & not £250 out

EarthBoy

ionakathryn wrote: »

Hi so I think this offer sounds amazing - getting 5% interest is nice!....
My plan was to put £2,000 straight into the account and continue adding £500/month. That would mean I can get £100/month from the bank...

It's 5% interest per year, not 5% per month; it's just paid monthly, not in one annual lump sum.

Eco_Miser

You get 5% AER (Annual Equivalent Rate) on up to £2000. One twelfth of this (approximately) is added to the account each month.
The actual calculation is 1/365th of the annual gross rate (4.89%) times the the lesser of £2000 or the closing balance for each day, with the accumulated sum being paid into the account on the last day of each accounting period (usually the second working day of the calendar month).

You have to pay £500 a month into the account each month to be eligible to receive interest (and also to have elected to go paperless). You do not have to leave this £500 in the account, and it is almost pointless to do so if your balance is already £2000 or more.
You may like to pay £250 of it into the TSB 5% monthly saver.

You may like to look at other banks also paying 5% (or 6% or 4% or 3%) per year. https://forums.moneysavingexpert.com/discussion/5374614

colsten

ionakathryn wrote: »

Anyway, I can understand that TSB customer service is awful.

Why do you say that?

ColdIron

ionakathryn wrote: »

Anyway, I can understand that TSB customer service is awful.

Not in my experience, they're just fine

TheSageMan

Hi

Just wanted to share my experience of the TSB accounts.

Found easy to setup online, had to pop in to branch for an ID check for Mrs TheSageMan but no issues there.

So between us we both have a sole account, and also a joint account, the latter we use for household bills.

The sole accounts both have exactly 2000 each, the bills account 2000 plus whatever the bills come to each month.

Every month I move 500 from my Lloyds current account into my sole account, then a day later back to Lloyds, this is repeated for the other two accounts - all done via standing order.

Every month we get about 6 or so pounds from each account I interest which is subsequently moved on to another high interest current account with Tesco.

It does work, had no issues with TSB in branch and if weren't for the 4% I get at Lloyds I possibly would have shifted my banking there - but I like free money

All the best with it all,

TheSageMan

Dan83

2%AER paid monthly

jimjames

Dan83 wrote: »

2%AER paid monthly

What account do you have? It's not the same one as everyone else with 5%.

YorkshireBoy

TheSageMan wrote: »

Every month I move 500 from my Lloyds current account into my sole account, then a day later back to Lloyds, this is repeated for the other two accounts - all done via standing order.

Why?......