Tesco Bank? TSB Classic Plus ...?

jjlothin

My main current account (into which my salary's paid and from which most of my DDs come out) is First Direct, and I also have a current account with Santander (maxed out to £20k).

I have another £1-2k I'd like to find a home for (which would give me instant access), and I'm wondering about either Tesco's - which has the advantage of not requiring monthly pay-ins, or so far as I can tell, DDs - and also TSB Classic Plus ...

Obviously TSB pays higher (5% as opposed to 3%), but I did once forget to do the monthly £500 transfer on my Santander account and lost £40-50 interest, so from that point of view, Tesco's is rather appealing! (I'm not very confident about the idea of setting up DDs for the pay-ins/pay-outs ...)

Or would there be a problem with running 3 'current' accounts, and should I think about an instant-access savings account instead?

Any advice welcome!

ColdIron

No requirement with TSB or Tesco for Direct Debits. The funding requirement for TSB is easily solved with Standing Orders so there is nothing to forget, just set the date 4 or 5 days away from month end to avoid potential problems with bank holidays or weekends

In addition to the 5%, opening the TSB would give you access to their 5% regular saver, if you have already got the FD one, and the 5% cashback offer on contactless payments

Your Santander 123 would be a good feeder account for the regular saver

Seems a no brainer to me

xylophone

My main current account (into which my salary's paid and from which most of my DDs come out) is First Direct, and I also have a current account with Santander (maxed out to £20k).

Wouldn't you gain by having any cashback DDs taken from Santander 123?

You would open the TSB plus and set to paperless.

You would pay in your £2000.

You would set up same day mid month SO for £500 from TSB to Santander and £500 from Santander, making sure of course that you had enough in both to meet the SO.

Otherwise, set up the SO from Santander and a manual FP from TSB.

Shedman

Also keep the TSB balance at as close to £2000 as you can even if it means dipping into the Santander (or prob even better use any spare in FD) as clearly you would be 2% p.a. better off (5% vs 3%). Might not be much but with instantaneous internet transfers it's easy and every penny counts

typistretired

With TSB, like Bank of Scotland, the £500 does not have to be from an external current account. Set up two TSB Classic Plus accounts (I've seen somewhere on here that you may have to phone them to set up the second account so long since I opened mine so can't confirm) Put £1,000 in each and when you check your interest just move £500 back and forth between them.

xylophone

Set up two TSB Classic Plus accounts

I don't think you are allowed two sole now.

jjlothin

Really appreciate all this helpful advice, which has given me the confidence to go on and do it (i.e. set up TSB Classic Plus ... one of them at least)!

Well, when I've got time (I'm supposed to be 'at work' at the moment! )

typistretired

xylophone wrote: »

I don't think you are allowed two sole now.

TRUE. I opened when you could. Maybe jjlothin can open a joint with a partner or?

•The Classic Plus Account is restricted to one account in your sole name, and another Plus account in joint names

lilladyvinyl

Sorry in advance for the long post, but I am in shock after my experience with TSB, so this is a cheap form of therapy. Would be interested to hear if anyone else has experienced something like this?

Following a redundancy this year, the one positive of that life changing event is the healthy settlement I received after 18 years of service. Following Martin's great advice, I decided to spread my money around different current accounts, to take advantage of the preferable interest rates they are offering, compared to saving accounts. One of them was TSB.

The online application was very straightforward. I was approved and had instant access to the account number so I immediately transferred the max funds for the 5% interest rate. I opened a saving account on the same day and immediately transferred funds into that too.

The following week I received my welcome pack, my security number to be able to set up payments from the account, and my contactless debit card and pin. I set up a couple of standing orders, paid some more money into the account, used my card on paypal with no problems at all.

There was an instruction with the debit card that I had to use it in a ATM to activate the contactless feature, so yesterday I took it out with me to do just that. Imagine my surprise when after correctly entering my new pin and requesting a £10 withdrawal, my card was retained by the ATM!!! :mad: Luckily I had another card with me!!

I called customer services, who informed me that the new accounts team had put a block my account. I asked why, they didn't know, and to find out I had to call back the next day. I called back and was told the same thing. I wrote a complaint and a very nice lady called me back, she also didn't know why the account had been blocked, but said she would find out from the relevant department and call me back.

The answer was that as per their terms and conditions, they can block the account at any time for a security check and they don't have to inform you. AT ANYTIME PEOPLE!!! BLOCK THE ACCOUNT FOR 24 HOURS ANY TIME THEY DEEM APPROPRIATE!

I asked why, and why instead don't they contact their customers to clarify transactions, if they are worried about them. They said that is not their policy. I asked how I could possibly rely on an account that I could be blocked from using without any warning or notification. Unfortunately that is their policy. I asked if she could tell me why a brand new account was blocked after a week of use, and a brand new card retained one it's very first use, she said unfortunately the law prevented her from telling me the reason.

I read their terms and conditions: there is a lot of hiding behind the law:

We use systems to identify payments that seem
unusual and to help us prevent the misuse of
your account. This may include using widely
available geographical mobile phone technology
when assessing the location of a proposed
payment if you ask us to send funds from your
account elsewhere. Where we think an unusual
payment involves misuse we may investigate
further, for example by calling you, or refusing to
make the payment.
(j) If we prevent you from using your account
or cards, or refuse, or are unable to make
a!payment under this agreement, we will act
in!a!manner we think is reasonably appropriate
for the circumstances and try to reduce the
inconvenience to you.
(k) Unless the law prevents us from doing so,
we will try to contact you to tell you that we
are refusing, or are unable to act on your
payment instruction. We will do this at the
earliest opportunity but in any case by the
time the payment should have reached the
bank you asked us to make the payment to.
If you are using a card to make a!payment or
withdrawal from a cash machine, the retailer or
organisation which owns the cash machine will
tell you that the payment has been refused. For
certain contactless transactions, the retailer or
organisation may not be able to confirm at the
point the card is used that the transaction has
been declined. If you want to check whether a
transaction has been accepted, you can call us
on the number in the “Contact Details” section,
at the beginning of your Personal Banking
Terms and Conditions leaflet.
(l) You can also contact us to find out (unless the
law prevents us from telling you) why we have
refused to act on your payment instruction and
how you can correct any factual errors that led
to our refusal.

Perhaps they think I am a terrorist or I am money laundering. I am all for bank security, but as they did not actually ask me any questions about my transactions, it is unclear to me what checks they actually carried out? Comments welcome and thanks, it feels good to get it all out!

Eco_Miser

lilladyvinyl wrote: »

Perhaps they think I am a terrorist or I am money laundering.

Perhaps they do, who knows?

However, you'll find that whatever bank you use, they can block the account at whim, so you may as well stay with the one offering the greatest benefit - and make sure you have at least two accounts with unconnected banks in case one gets blocked.

CLAPTON

lilladyvinyl wrote: »

Sorry in advance for the long post, but I am in shock after my experience with TSB, so this is a cheap form of therapy. Would be interested to hear if anyone else has experienced something like this?

Following a redundancy this year, the one positive of that life changing event is the healthy settlement I received after 18 years of service. Following Martin's great advice, I decided to spread my money around different current accounts, to take advantage of the preferable interest rates they are offering, compared to saving accounts. One of them was TSB.

The online application was very straightforward. I was approved and had instant access to the account number so I immediately transferred the max funds for the 5% interest rate. I opened a saving account on the same day and immediately transferred funds into that too.

The following week I received my welcome pack, my security number to be able to set up payments from the account, and my contactless debit card and pin. I set up a couple of standing orders, paid some more money into the account, used my card on paypal with no problems at all.

There was an instruction with the debit card that I had to use it in a ATM to activate the contactless feature, so yesterday I took it out with me to do just that. Imagine my surprise when after correctly entering my new pin and requesting a £10 withdrawal, my card was retained by the ATM!!! :mad: Luckily I had another card with me!!

I called customer services, who informed me that the new accounts team had put a block my account. I asked why, they didn't know, and to find out I had to call back the next day. I called back and was told the same thing. I wrote a complaint and a very nice lady called me back, she also didn't know why the account had been blocked, but said she would find out from the relevant department and call me back.

The answer was that as per their terms and conditions, they can block the account at any time for a security check and they don't have to inform you. AT ANYTIME PEOPLE!!! BLOCK THE ACCOUNT FOR 24 HOURS ANY TIME THEY DEEM APPROPRIATE!

I asked why, and why instead don't they contact their customers to clarify transactions, if they are worried about them. They said that is not their policy. I asked how I could possibly rely on an account that I could be blocked from using without any warning or notification. Unfortunately that is their policy. I asked if she could tell me why a brand new account was blocked after a week of use, and a brand new card retained one it's very first use, she said unfortunately the law prevented her from telling me the reason.

I read their terms and conditions: there is a lot of hiding behind the law:

We use systems to identify payments that seem
unusual and to help us prevent the misuse of
your account. This may include using widely
available geographical mobile phone technology
when assessing the location of a proposed
payment if you ask us to send funds from your
account elsewhere. Where we think an unusual
payment involves misuse we may investigate
further, for example by calling you, or refusing to
make the payment.
(j) If we prevent you from using your account
or cards, or refuse, or are unable to make
a!payment under this agreement, we will act
in!a!manner we think is reasonably appropriate
for the circumstances and try to reduce the
inconvenience to you.
(k) Unless the law prevents us from doing so,
we will try to contact you to tell you that we
are refusing, or are unable to act on your
payment instruction. We will do this at the
earliest opportunity but in any case by the
time the payment should have reached the
bank you asked us to make the payment to.
If you are using a card to make a!payment or
withdrawal from a cash machine, the retailer or
organisation which owns the cash machine will
tell you that the payment has been refused. For
certain contactless transactions, the retailer or
organisation may not be able to confirm at the
point the card is used that the transaction has
been declined. If you want to check whether a
transaction has been accepted, you can call us
on the number in the “Contact Details” section,
at the beginning of your Personal Banking
Terms and Conditions leaflet.
(l) You can also contact us to find out (unless the
law prevents us from telling you) why we have
refused to act on your payment instruction and
how you can correct any factual errors that led
to our refusal.

Perhaps they think I am a terrorist or I am money laundering. I am all for bank security, but as they did not actually ask me any questions about my transactions, it is unclear to me what checks they actually carried out? Comments welcome and thanks, it feels good to get it all out!

sadly it is your vile government's fault : complain to your MP.