Loss of TSB 5% contactless benefits

houlahan

Hi, I opened a current account with TSB in May this year to benefit from the 5% interest on £100 spending using contactless each month.This benefit apparently ceases in Dec this year unless you opened your account from June 1st,in which case the benefits go on till Dec 17! I am obviously a bit peeved and am wondering if there is anything stopping me closing and reopening the account so I can continue to get the benefits for another year. Anyone any clue about this please?

colsten

The offer actually ends 30 September 2017 for accounts opened on or after June 1 2016. Can't see why you couldn't close your existing account and open another one if you want to continue getting cashback until end of September next year. Your only risk is that TSB might not accept your new application.

adindas

Also just to add if you currently have two of them. Closing one old a/c you will not be able to get a new one again as nowadays they only allow one account per customer.

Close one or both them and reapply only one of new account, there is still a chance that you might not get it.

teddysmum

adindas wrote: »

Also just to add if you currently have two of them. Closing one old a/c you will not be able to get a new one again as nowadays they only allow one account per customer.

Close one or both them and reapply only one of new account, there is still a chance that you might not get it.

You can have two accounts, provided that the second is joint. My husband and I have three between us.

Katiehound

teddysmum wrote: »

You can have two accounts, provided that the second is joint. My husband and I have three between us.

Ah, but you could have 2 accounts per person originally- why risk losing one of those with the 5% interest for the contactless benefit? (Presumably that means you could have had 5 between you- or even 6!!)

AndyPK

I'm a little confused by this benefit anyway.

If you use it as a savings account leaving £2K in there, there is no point in using contract-less.

As what you loose on the interest, you gain on cashback ?

AndyTh_2

AndyPK wrote: »

I'm a little confused by this benefit anyway.

If you use it as a savings account leaving £2K in there, there is no point in using contract-less.

As what you loose on the interest, you gain on cashback ?

The interest is 5% AER per year. The contactless is 5% up to £100 per month. This is significantly more on £100 in a month, and its not that hard to keep the account topped up each month with the money you would have otherwise spent in another current account, especially if having to transfer in £500 a month.

bubieyehyeh

AndyPK wrote: »

I'm a little confused by this benefit anyway.

If you use it as a savings account leaving £2K in there, there is no point in using contact-less.

As what you loose on the interest, you gain on cashback ?

Err, there is a good reason to use contactless for 5% cashback even if you have £2000 to put in the account.

You can keep lets say £2100 in the account, you don't earn interest on the £100, but you then don't lose interest on the £2000. Then just top it up every so often as you make contactless payments.

Jeems

I only leave 2k in there but when I spend on contactless, I will transfer the funds back in from another account. Doesn't really take long. Being London based, a lot of restaurants have contactless now and the BP's near me do too so the 5% is a great perk!

teddysmum

I have £2000 in a single and a joint account, then transfer £100 a month to each account for contactless use. Our main account, which receives our income and is used for shopping, doesn't pay interest, so there is no loss in transferring the money for contactless spends.


It could be transferred in smaller amounts, but this way I keep track of how much contactless spend, earning bonus, is still available per account

YorkshireBoy

teddysmum wrote: »

Our main account, which receives our income and is used for shopping, doesn't pay interest

Credit cards are for shopping! Then settle the bill some time later (ideally up to 27 months later), but in the meantime earn interest on the cash. For every £100 of spend, the lender only wants £1 of it back each month (during a 0% intro period)...put the other £99 in a regular saver each month.