Tesco Savings DDs

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?'

NoodleDoodleMan

It surprised me that multiple BoS Vantage accounts can be funded by linked internal standing order transfers from one Vantage account to another, so there is no need for an external bank source to credit the monthly £1000.

Amazingly this incestuous procedure is still permitted.

Eco_Miser

NoodleDoodleMan wrote: »

It surprised me that multiple BoS Vantage accounts can be funded by linked internal standing order transfers

AFAIK, all LBG accounts can be internally funded.
This way, there is no need for the saver to open an account with a different bank (and possibly find they prefer that bank).
Also, someone using the accounts 'properly' could be expected to receive their salary into one account and then move portions of it into the other two accounts to save.

veryintrigued

NoodleDoodleMan wrote: »

It surprised me that multiple BoS Vantage accounts can be funded by linked internal standing order transfers from one Vantage account to another, so there is no need for an external bank source to credit the monthly £1000.

Amazingly this incestuous procedure is still permitted.

For a whole load of seriously determined MSErs the need for external funding would take only seconds longer (each month) than the internal funding (if done manually!).

Therefore am not sure what your point is.

This thread seems to be evolving further into 'how can we close down half decent accounts'.

Strange.

NoodleDoodleMan

Therefore am not sure what your point is.

The point being that up to 3 x BoS Advantage accounts can be opened and internally funded without the need for any external bank account involvement.

Once set up they run on a mutual self service cycle.

All other banks's current account deals appear to demand a minimum monthly funding from an external source.

I may be wrong on that of course.

AFAIK, all LBG accounts can be internally funded.

Thanks for that, I was unaware.

DennisTenus

Penitent wrote: »

like I did with Santander (since I don't earn cashback, I was only earning the equivalent of 1.19%, so it wasn't worth keeping anymore).

Ah is it actually 1.19% factoring in the £5 charge per month?

I don't earn cashback there either.

deutsch

Penitent wrote: »

Current rate is 1.49% on £20k with a £5pm fee.

20000*0.0149=£298pa interest, so £238pa after the fee.

238/20000*100 = 1.19%

you can get the 5% regular esaver which negates the £5 fee per month (£64.33 interest in total for a year) when you have the 123 account. £200/month to save though.

https://www.santander.co.uk/uk/savings

DennisTenus

Ah yeah I've got that

das1969

deutsch wrote: »

you can get the 5% regular esaver which negates the £5 fee per month (£64.33 interest in total for a year) when you have the 123 account. £200/month to save though.

You could switch to a 123 lite, with a £1 fee per month, keep the regular saver and move the balance into an account with a higher interest rate.

veryintrigued

das1969 wrote: »

You could switch to a 123 lite, with a £1 fee per month, keep the regular saver and move the balance into an account with a higher interest rate.

Or (assuming you can find a better home for the balance in the 123 current account) save even more by downgrading to an Everyday account (once you've opened the Regular Saver at 5% which will stay at this rate) then apply to upgrade back to a variant of the 123 account close to the RS maturing.