Tesco Instant Access Savings rate - have I made a mistake or just been cheated?

beetrootjuicer

Did anyone else open a Tesco Instant Access Savings Account at the recent promotional rate of 6.5% as mentioned on MSE? After a nightmare 6 weeks with this account, including a fraud alert when an unknown person's name was added as a payee (turned out it was Tesco's themselves who'd done it) and the account was frozen, I finally have access to the account today so I checked interest rates with telephone banking today only to find out I'm being paid 4.91% not 6.5%!

Now I think I'm pretty savvy with interest rates and I thought I'd checked this thoroughly before opening the account but Tesco's say there was a grid on the website clearly stating that 6.5% only applied to deposits over £15k but I certainly didn't see anything to that effect. Also, as I have been talking a lot to Teso's over the last few weeks I have twice checked with their customer's services and both times have had it confirmed verbally that the rate was 6.5%! Been through my paperwork and discovered that very cunningly Tesco's have put nothing in writing about the interest rate!

Has anyone got any paperwork to show what the rates were on 10/8/07 and can anyone tell me whether I've made a mistake or been conned? Many thanks.

Nick_C

Sorry, but you made a mistake.

See http://forums.moneysavingexpert.com/showthread.html?t=227792&page=9

6.25% includes a 1% bonus for 6 months for new accounts opened before 14 August 07, and the rate went up to 6.5% from 15/8. These rates were for £15k+

The tiered rates were shown on the Tesco website

beetrootjuicer

Not what I wanted to hear, Nick, but thanks for taking the trouble to reply. Teach me to be more careful in future, won't it! Have to see if there's a better paying home for it. It's just a bit galling given the nightmare I've had over this account with Tesco and also wouldn't have been so bad if customer services hadn't twice confirmed the rate was 6.5%. Thanks, again.

Nick_C

How about Sainsbury's Internet Saver? Not quite as good as the Tesco account as no cash card, but 6.25% interest on as little as £1

Joint venture between Sainsbury's and HBOS(Halifax), so fairly safe I would have thought

beetrootjuicer

Yes, had a quick look at this one and it looks good - not worried about not having a cash card. Shall go into it in more depth (lesson learnt!). Tesco paid me some 'goodwill' for all their c**k-ups so if I move accounts quickly I should end up with the same amount I would have done on the higher rate.

barak

beetrootjuicer wrote: »

Did anyone else open a Tesco Instant Access Savings Account at the recent promotional rate of 6.5% as mentioned on MSE? ........and can anyone tell me whether I've made a mistake or been conned?

When did 'Tesco' receive your application? There was some delay in opening these accounts. My account wasn't opened until 21st August, but after enquiring by phone, I now have a letter confirming that they received my application by 14th August and I am getting the 1% bonus.

beetrootjuicer

Thanks, Barak. The account was opened on the 10th August. Would you mind telling me what rate you're getting and, sorry, don't answer if it's too personal a question, but did you invest less than £15k?

I really feel badly treated by Tesco. I'd let it go if it wasn't for the fact that I asked twice on the phone about the rate and twice was told it was 6.5%, no mention of a balance of over £15k and this from people who had the balance on my account in front of them. Still, lucky I found out sooner rather than later, I suppose.

rarrarrar

My account open letter was dated 14th August and I get 6.75%.
Or rather 5.75% at present with the 1% bonus coming after 6 months.
I have >15k in the account.
I've checked the interest I have had so far and it seems correct.

beetrootjuicer

rarrarrar wrote: »

I've checked the interest I have had so far and it seems correct.

Thanks, rarrarrar. This is another worrying thing, though. You've had your monthly interest added - mine hasn't been although I asked for monthly interest. I'm really nervous about this account. I've never come across such frightening inefficiency.

In response to Barak's post I phoned Tesco again and this time seemed to get someone who knew what she was talking about. Apparently I'm getting 5% + 1% bonus at the end of 6 months which although it's not the 6.5% I thought I was signing up for (my mistake) it's a lot better than the flat 4.91% with no bonus that Tesco insisted I was getting this morning (don't they train their staff?). I've asked for a letter confirming the rate as I've had nothing in writing from them, unlike Barak who received a confirmation letter. I'll wait with bated breath to see if anything turns up!