Tesco Savings DDs

Yorkshire_Pud

polymaff wrote: »

Most will find that the BoS Classic with Vantage yield per mandate is less than the Halifax Reward

I will be ditching two of these BOS accounts in May. Whilst the return of 2% is OK, any failure to have 2 direct debits paid out in any month means no interest at all for that month and that would take a long time to claw back the loss. Not worth the other for me.

I much prefer the get it or don't get it payment from Halifax and Co-op and no need to keep the account loaded up with a high balance.

Yorkshire_Pud

Herbalus wrote: »

If Tesco do that we will have much less than a year to sort, as I doubt they will give a years notice.

Still, my two cents is that a rate cut is more likely. They guarantee the rate until 2019, so logically the rate will change after that. Though a year is a long time and they could just change the whole product.

I doubt Tesco have any fixed plan at present, will depend on market conditions at the time and the Tesco current account is a very ordinary current account apart from the good interest rate. So if TSB are still offering such a good account as the Classic Plus in the future I can't see Tesco keeping their current account customers if they cut the interest rate or make too many onerous demands.

Steve_xx

Yorkshire_Pud wrote: »

I will be ditching two of these BOS accounts in May. Whilst the return of 2% is OK, any failure to have 2 direct debits paid out in any month means no interest at all for that month and that would take a long time to claw back the loss. Not worth the other for me.

I much prefer the get it or don't get it payment from Halifax and Co-op and no need to keep the account loaded up with a high balance.

I'm not sure of your logic here. If the Halifax DD's failed, you wouldn't get the reward. Though I accept that you wouldn't have lost interest on a 5k balance if you ditched BoS. In reality, how often do they fail?

polymaff

Steve_xx wrote: »

I'm not sure of your logic here. If the Halifax DD's failed, you wouldn't get the reward. Though I accept that you wouldn't have lost interest on a 5k balance if you ditched BoS. In reality, how often do they fail?

I guess that it is six of one and half-a-dozen of the others. High-balance accounts could lose interest, low-balance accounts would be more likely to go into the red if one forgot to top them back up regularly. A new regime to get used to.

Let's hope that if one DD is to burp it will be the Co-op one. :rotfl:

YorkshireBoy

Steve_xx wrote: »

I'm not sure of your logic here. If the Halifax DD's failed, you wouldn't get the reward. Though I accept that you wouldn't have lost interest on a 5k balance if you ditched BoS. In reality, how often do they fail?

Giving up BoS loses £99 per year per full account.

But this loss is offset by the £65/yr the £5K would make with Tesco for example at 1.30%.

Add in the £36 Reward payments and they'd be £2 better off than if they'd closed Halifax and kept BoS.

I can see the logic, but I wouldn't close BoS. I'd keep it ticking over for two reasons:

1. BoS may relax the DD requirement, or
2. A replacement source of multiple DDs may come along.

polymaff

YorkshireBoy wrote: »

Giving up BoS loses £99 per year per full account.

But this loss is offset by the £65/yr the £5K would make with Tesco for example at 1.30%.

Add in the £36 Reward payments and they'd be £2 better off than if they'd closed Halifax and kept BoS.

ONLY if their taxable savings interest is all at 0% AND they do pay tax at more than 0% on some of their taxable non-savings income.

Agree with keeping accounts open, though ! Yorkshire eggs, eh?

fun4everyone

Always learn a lot from reading your posts YorkshireBoy they are appreciated ty.

Just replaced a Tesco DD with RateSetters "Regular Lending" DD @ £10 pm.

molerat

I am managing to keep 2 BOS open so will run one down to £1 but MrsM will be taking all her 3 down to £1. Have regular savers so need to keep something open.

michaels

Just checking, is the sw saving account 2 a max of 1 dd per saving account?

adindas

michaels wrote: »

Just checking, is the sw saving account 2 a max of 1 dd per saving account?

YES 1 dd per saving account and max two accounts per person