MSE News: Tesco Bank reopens applications for current account offering 3% interest

Jeems

xylophone wrote: »

I wonder how long TSB will feel compelled to wear the 5% hair shirt......

I was actually on the verge of closing my TSB account - I was moving abroad and 3% on £1500 at the time didnt seem worth the effort. But then the IT thing happened and they sent out the begging letter raising the rate and promising it wont be cut. I can see them keeping it next March/April at least....



...ok I just jinxed it for everyone. Sorry!

MDMD

Jeems wrote: »

I was actually on the verge of closing my TSB account - I was moving abroad and 3% on £1500 at the time didnt seem worth the effort. But then the IT thing happened and they sent out the begging letter raising the rate and promising it wont be cut. I can see them keeping it next March/April at least....



...ok I just jinxed it for everyone. Sorry!

Unless the new TSB CEO decides to can the 5% when she starts......

https://www.tsb.co.uk/news-releases/tsb-announces-new-ceo/

trinidadone

so has anyone got any plans regarding their tesco bank account/s now the rate has dropped from 3% to 1%? the min savings account is 1.5% so is it worth holding onto the account/s??

Nebulous2

I’m currently on holiday, so haven’t seen my letter yet, but I haven’t had the first direct switching bonus, so my Tesco account may be moving there.

I have an old account, with no dd requirement. I’ve been trying to use it and top it up in the last few months, because I thought it was too good to last and thought if I used it they might have more interest in keeping me. It hasn’t worked on this occasion, but I do try to have some throughput in all my current accounts to preempt the bank closing it.

Zanderman

trinidadone wrote: »

so has anyone got any plans regarding their tesco bank account/s now the rate has dropped from 3% to 1%? the min savings account is 1.5% so is it worth holding onto the account/s??

Lots of discussion already on the main thread about Tesco's interest rate reduction here:
https://forums.moneysavingexpert.com/discussion/comment/75520336#Comment_75520336

Re your question, you can hold a Tesco savings account without having a current account so no, no reason to keep the current account..

SlovakianGuy

trinidadone wrote: »

so has anyone got any plans regarding their tesco bank account/s now the rate has dropped from 3% to 1%? the min savings account is 1.5% so is it worth holding onto the account/s??

It hasn't dropped yet.

I've got 2x Tesco so I will probably switch one and keep the other one. I like the look of their online banking. And also, there is some tiny chance they will raise the interest again in the future. Who knows..

masonic

SlovakianGuy wrote: »

And also, there is some tiny chance they will raise the interest again in the future. Who knows..

I can understand holding on to an account if it still serves a purpose, but it seems unlikely they'd raise their rates only on existing accounts. If you have an account without a requirement for DDs and funding, then that could be worth holding on to.

SlovakianGuy

masonic wrote: »

I can understand holding on to an account if it still serves a purpose, but it seems unlikely they'd raise their rates only on existing accounts. If you have an account without a requirement for DDs and funding, then that could be worth holding on to.

To me it's OK.
I'll keep a smaller amount on money in it and direct debits active so if there's suddenly a great offer, such as The Co-op £200 in 2011, or CYBG £250 in 2017, I can switch immediately. Some banks require 3 or even 4 active direct debits on the old account which is going to be switched over to them.

Cotta

badger09 wrote: »

No need. Cotta is managing to keep TSB complaints department busy all by himself;)

Not for much longer hopefully

On the Tesco interest drop I don't think we have many options. I have three regular savers at 5% and I am going to switch to M&S to get a fourth, after this the options are very poor.

New_York_No1_fan

Interest goes down to 1% from April 2019