Tesco Savings DDs

EachPenny

adindas wrote: »

...You might make mistake you forget to fund it, you will go overdrawn + mark on your credit file.

So simply set up a standing order on an account which has funds in it to pay the required amount a few* days in advance of the DD coming out. (*the exact number of days allowing for non-working days and differences between banks in processing SO's and DD's on working and non-working days.)

The lost interest at 2% on £40 if it is sitting in a less attractive account for say 10 days works out to about 2 pence. So not really something to get too agitated about, or risk bank charges over.

anna42hmr

mt99 wrote: »

Another option is this (min £10/month savings):

https://www.glasgowcu.com/savings/christmas-saving/

Yep but only if you live in the Glasgow postcode area, as you will see from the tens account can o not be opened by members of the credit union and when you look at the membership terms it states only for people in the G postcode area. Other regional credi5 unions may be suitable for others in different areas of th3 country.

anna42hmr

mt99 wrote: »

The Westcountry savings Credit Union have a Christmas saver that you can set up with WEEKLY direct debits. There is a £1.50 a year joining fee though:

http://www.westcountry.org.uk/Christmas-savings

Unfortunately as with the Glasgow one mentioned above to open it you have to join the credit union and tha5 also is restricted to local areas http://www.westcountry.org.uk/content.asp?section=257

EachPenny

djpailo wrote: »

I still think its strange that you think people sharing the product on these small forums had any major bearing on what Tesco does. It was freely advertised on their website. As I said earlier, I suspect it was how the product was used (abused), rather than the fact it was shared, which is what got it stopped.

If you put various financially related phrases like "£1 Direct Debit" into a seach engine like Google then one of the first results, if not the first, will be a page on this 'small forum'. Which is also visited by people writing about financial matters who are on the lookout for material for their next listicle.

The more that something gets mentioned online, the more prominent that information might become in search results. And the more likely people will see the idea and think what a splendid way to make some money.

I wouldn't say MSE can claim sole credit for Tesco's decision, but I'd happily bet five DD's that sites like MSE discussing the Tesco accounts has led to a volume of interest in using them for the DD facility which has made Tesco's decision inevitable.

I don't think Tesco made the decision solely to upset their customers.

djpailo wrote: »

The mistake to learn from is that when giving people advise on these accounts, it should be clear that they should be used properly and not abused so that everyone can enjoy them. The information should not be hidden, obscured, or informed in a "subtle" way - this may only add to confusion.

Good luck with that. First of all, try and get an agreed definition of 'used properly and not abused'.

EarthBoy

anna42hmr wrote: »

Unfortunately as with the Glasgow one mentioned above to open it you have to join the credit union and tha5 also is restricted to local areas http://www.westcountry.org.uk/content.asp?section=257

All credit unions are restricted by law to people with a "common bond". This usually means that you have to live in their operating area, or work in a specific field etc.

mt99 wrote: »

Another way is to google 'credit union savings accounts'. ..... you can probably set up 50 DDs if you put your mind to it!

This wouldn't be possible because of the above mentioned restriction.

Vortigern

mt99 wrote: »

One alternative for DD is a monthly savings account for Christmas.

the downside is that you get your money back at Christmas but in vouchers so you have to spend at those stores, but at least it's your money unlike eg giving to a charity. Not sure what the minimum is though.

Another downside is that these Christmas savings clubs are not protected by the FSCS and you could lose all your cash.

http://www.bbc.co.uk/news/uk-scotland-38290845

Mchambers

Anymore views and opinions.

redux

If people are looking for new direct debits to set up, one option that might be overlooked is road tax for a car, set up online.

They charge 5% on top for paying by direct debit, but for cars on the £20 or £30 a year rates someone might be willing to put up with the extra £1 or £1.50

surreysaver

If these people:

http://onepounddd.com/

can make a profit and still give money to charities, I don't think there is any issues setting up £1 direct debits directly with charities.

adindas

In their product information, they mention:
"Pay out at least 2 DDs each month"

From the above information my understanding is that 1 DD source pay fortnightly will meet this criteria.


Has anyone tried this and could share his/her personal experience or could provide the link where people confirm this ??

Thanks