Tesco Savings DDs

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

CheshireHenry

My first post. Got a few points to make, so it's fairly long.

Tesco's Reasons.

There is a Tesco forum (I can't link to it being a new user) where we are told that the decision to withdraw direct debits "is entirely a commercial decision and is due to an internal process change".

The letter I received said it was "...to bring account functionality in line with other savings accounts on the market". Hardly an internal process change then?

My letter also says it's "in order to keep your account as secure as possible". So after years of the industry promoting DDs Tesco are removing them because they are not "as secure as possible"?

A Pattern Emerging?

My wife noted the following:
Tesco had a good product with the hudl tablet - discontinued.
They had a good in-store optician - sold to Vision Express.
They had a good pharmacy, which seems to have been "reorganised" in our local store.
They had a useful savings account...you see where I'm going?

Alternatives

I have had a PO Internet Saver for sometime and it's been reliable. Only issue is that transactions take a few days to go through. Incidentally it's run by the Bank of Ireland who take regulatory compliance to almost farcical levels. If there was a rule about finishing DDs on savings accounts, they would have acted on it.

I shall have a look at Ecology BS regular saver or the Scottish Widow's Instant Saver 2.