Tesco Current Bank Account

OceanSound

OceanSound wrote: »

.....So, for example, say my account was opened on 31 May 2018. I could pay in £750 tomorrow. Then have three direct debits leave the account before 30th June (note that there is no 31st in June, so does Tesco take 30th June or the 01 of July for the end date of the statement month?)........

My account was actually opened on 30 May 2018. I received letter from Tesco dated next day (31 May). I was paid interest on 30 June (even though it was a Saturday!). Just out of interest, does anyone know what would have happened IF i had opened account on 31 May?, would interest have been paid on 30 June or 01 July?
BTW: anyone setting-up DD's, start doing it early. I just about snuck-in with the last two DD's paid out on 28 June. It was edge of the seat stuff. Real Nail biter!. Of course, this was partly due to activating the account as late as 18 June.

pafpcg

OceanSound wrote: »

My account was actually opened on 30 May 2018. I received letter from Tesco dated next day (31 May). I was paid interest on 30 June (even though it was a Saturday!). Just out of interest, does anyone know what would have happened IF i had opened account on 31 May?, would interest have been paid on 30 June or 01 July?

First, Tesco Bank operates on the principle that every day is a working day, so transactions will occur without regard to whether it is a weekend day or bank holiday. This makes Tesco very useful if you need a future-dated payment to go out on, say, a Sunday; payments will go out on the date specified with no waiting for the next working day as at "traditional" banks.

Interest is paid on the day of the month you opened the account - one of my accounts also pays interest on the 30th and you'll get it whatever the day of the week it is. It'll appear on the last day of February (28th or 29th). But it won't be credited to your account until late in the day, so effectively you won't be able to withdraw the interest until the following day. You'll get an email on the day following the interest payment - I use that as the reminder to check the account and move the interest.

If you'd opened the account on the 31st, you'd receive the interest on the 30th for 30-day months. The payment would, of course, only be for 30 days.

OceanSound

pafpcg wrote: »

...You'll get an email on the day following the interest payment

I received an email on 01 July saying the statement (including notification of fees and interest) is available to be viewed in the document store.
When I checked statement, it had the following:

During this statement month you have met the conditions to receive the 2.96% rate of credit interest.

I've seen on this forum that members receiving £7.50 or £7.51 per month interest. That's interest at 3.00%. If the rate is 2.96%, I'm bound to receive less than £7.50/£7.51. How come?

I use that as the reminder to check the account and move the interest

Good idea. To satisfy the pay in part of the condition, I presume we can move £750 to a Tesco online savings account, then move it back.... Terms and conditions says 'pay in at least £750'. What I've just described does that, no?

pafpcg

OceanSound wrote: »

To satisfy the pay in part of the condition, I presume we can move £750 to a Tesco online savings account, then move it back....

Yes! That'll be enough.

pafpcg

OceanSound wrote: »

I've seen on this forum that members receiving £7.50 or £7.51 per month interest. That's interest at 3.00%. If the rate is 2.96%, I'm bound to receive less than £7.50/£7.51. How come?

The interest rate is 2.96% GROSS (3%AER). If you keep £3,000 balance for the full month and meet the terms, you should be credited with £7.54 in 31-day months and £7.29 in 30-day months.

OceanSound

pafpcg wrote: »

The interest rate is 2.96% GROSS (3%AER). If you keep £3,000 balance for the full month and meet the terms, you should be credited with £7.54 in 31-day months and £7.29 in 30-day months.

Received £7.54 interest on 31 July. (my statement month for current account1 runs from 1 July 2018 – 31 July 2018)

OceanSound

Careful guys. The monthly pay-in has to be done within your statement month. Wheras the DD's done within calendar month (from what I understand).

For current account2 (opened around 06 July 2018) I nearly made the mistake of doing the pay in for August on 02 August. Of course, it wouldn''t have counted!. I just realized this now. So jimmied £750 from savings account to current account2 today. I reckon use pafpcg's trick for next time or set recurring reminder on mobile.

pafpcg wrote: »

... You'll get an email on the day following the interest payment - I use that as the reminder to check the account and move the interest...

Never take your eye off the ball..THat''s my motto.

OceanSound

OceanSound wrote: »

.... Wheras the DD's done within calendar month (from what I understand).

Actually, DD's (excluding direct debits to Tesco Bank savings accounts) also have to paid out within statement month, as mentioned on post #29

colsten

OceanSound wrote: »

Actually, DD's (excluding direct debits to Tesco Bank savings accounts) also have to paid out within statement month, as mentioned on post #29

There are no DDs to Tesco savings accounts any longer.

OceanSound

colsten wrote: »

There are no DDs to Tesco savings accounts any longer.

I think you are correct. Just now checked by logging in to the app and website. No option to setup Direct debit at all.

Although, I must say, when I checked the tesco bank website yesterday (before posting #49) it said:

To earn 3% AER credit interest on balances up to £3,000 until 1 April 2019, simply pay in at least £750 and pay at least three Direct Debits each statement month (excluding Direct Debits to Tesco Bank savings accounts)

And that corroborated with what the member in post #29 said.

Also, when I asked a question about the DD's and the £750 pay in on the Tesco community, a community expert posted a reply saying:

..at least three direct debits paid from your account per statement month (excluding direct debits to a Tesco Bank savings account) ...

I'm getting the feeling that they are simply copying and pasting from the Tesco Bank website, which is, suffice to say, a little bit behind on up to date info.