Tesco Savings DDs

clivep

deutsch wrote: »

Even though this is going in April 2018, we should still be allowed to set up new Direct Debits? No?

I got the message on both of my Tesco savings accounts:

We can't add your account at the moment because we need to do some extra checks. We'll contact you within five working days.

So I may have 8 accounts registered.
Are there limitations? Has setting up new DD's now stopped?

I have deleted 1 of the 8 accounts, but still get the above message.

I set up new DDs paying into my Tesco Instant Access and Internet Saver accounts on Friday OK. (I did this as the 4 Tesco DDs got consolidated into 2 following my current a/c switch from TSB to COOP).

EachPenny

Eco_Miser wrote: »

Not strange to consider it, but the number of people using BOS Vantage as savings accounts with Tesco as the DDs is probably small (and most of them have posted on here).
Further, those customers are costing BOS money (they could borrow commercially for less), so losing them isn't going to worry BOS, and will free up marketing money to get more customers who will use BOS for all their financial needs.

I also think with the ease of current account switching there is an element of the old vanity/sanity/reality question going on with some banks.

The number of current account customers often seems to be quoted as if it were a major KPI (and perhaps is for some boardroom bonuses), so encouraging people to open accounts and retain them might be high on the agenda, even if it results in a modest net loss financially.

Otherwise it might be difficult to explain, for example, why a mutual building society not only offers a market-leading current account credit interest rate but also offers a £200 cash incentive to switch.

DennisTenus

Penitent wrote: »

Would it cause some kind of disaster if someone were to ask BoS or Lloyds if they were aware of the change and were planning to relax the rules in order to retain customers? BoS, in particular, must be aware that their accounts are being used in this way, since they let you open three of them.

I assume the good rate some people have with these 3 BoS accounts is no longer available to new customers?

badger09

DennisTenus wrote: »

I assume the good rate some people have with these 3 BoS accounts is no longer available to new customers?

Why assume?

Why not check the T&Cs?

To make it easy for you:cool:

http://www.bankofscotland.co.uk/bankaccounts/

DennisTenus

badger09 wrote: »

Why assume?

Why not check the T&Cs?

To make it easy for you:cool:

http://www.bankofscotland.co.uk/bankaccounts/

Sorry I did but looked at savings accounts by accident, my apologies

badger09

DennisTenus wrote: »

Sorry I did but looked at savings accounts by accident, my apologies

Apology accepted:)

The best interest rates are to be found on current accounts and some of their linked regular savers.

DennisTenus

Hmm yes i know, I suppose it doesn't matter if i have over 20+ accounts! haha...

eskbanker

Penitent wrote: »

Would it cause some kind of disaster if someone were to ask BoS or Lloyds if they were aware of the change and were planning to relax the rules in order to retain customers? BoS, in particular, must be aware that their accounts are being used in this way, since they let you open three of them.

Go ahead and ask if you must, but I'd be astonished if (a) BoS Vantage accounts being used as savings accounts with DDs to Tesco were a significant proportion of the total, and (b) even if that was the case that they'd see such customers as attractive and worth incentivising to remain. They're current accounts targeted at people using them as such, why would they make it easier not to do so?

teddysmum

claire07 wrote: »

I was told by Tesco a few weeks ago you were restricted to six internet savers so try deleting one more.

I was told that too, when I enquired, having noticed that my two online savings accounts have different rates.


The person added that some regulars opened new accounts when the offer rate rises, then close the lowest paying,if an extra account exceeds the allowed 6. They also do this so they get the higher paying opening year rate ,which includes a bonus.

Eco_Miser

Penitent wrote: »

I'm not entirely convinced about this. People usually have one current account, with their wage paid into that account and all DDs coming from that account.

Many people do that, but others use various other accounts to save 'pots' for specific targets. BOS allows for three such pots.

Penitent wrote: »

The arrangement BoS has, where you can have 3 of these accounts with 2 DDs coming from each, doesn't encourage normal current account behaviour. By offering 3 accounts, they're encouraging people to arrange DDs in a way they wouldn't usually do in order to maximise interest. That's a very odd thing to do if they only wanted to target people using them as a current accounts.

Is it really any more unusual than Santander's 3% (as used to be) on £20000 in a single account? BOS (and Lloyds) offered £15000 spread over 3 accounts, no DDs needed, with the ability to partition your savings. Things have moved on, Lloyds changed to a different model, BOS added a requirement for DDs.
All three accounts mentioned were obviously for saving in as well as spending from.

Penitent wrote: »

BTW - I do recognise that their answer will more than likely be some version of what Eco Miser already said, I was only asking if it would be damaging in any way to ask. People on here constantly complain about the Tesco DD "trick" being shared with others, so I didn't want to cause them similar discomfort by bringing it up with BoS.

I think the danger with asking is that answering could require someone to think; and the thought could be 'we need to tighten the conditions further' or 'no-one else is offering three accounts, why are we still doing it?'