Savings accounts accepting DD's

Frank121

Somerset_La_La_La wrote: »

Thank you! Ahh it's only taken if you don't pay in £1,500 then - is that new? I was always under the impression I had to comply with both to get the interest AND avoid the fee.

I think you still need the DD's to earn the 2% interest. Paying in £1500 only means that you won't be charged the £3 fee.

Credit interest
Earn 2% AER variable credit interest (paid monthly) on balances between £1 and £5,000 if you pay out two separate Direct Debits each month. If your balance is over £5,000, you'll still earn 2% AER/1.98% gross on the first £5,000, but 0% on anything over that.

littly_kitty

The Scottish Widows one seems to be closed.

Anyone have any luck with the Birmingham Midshire one? It doesn't mention Direct Debits on the sign up page.

polymaff

littly_kitty wrote: »

... Birmingham Midshire one? It doesn't mention Direct Debits on the sign up page.

Linked Account - you'll need a 'Linked Account' which must be a UK bank or building society personal current account. The Linked Account must be in your name only or a joint account, but only if either of you can set up Direct Debits. The account you nominate as your Linked Account must be an account held at a bank within the UK. It must have the facility to have Direct Debits and must come with a cheque book. This account must be able to receive payments by the Faster Payment Service

Deposits - into your Birmingham Midshires account can be made by Direct Debit taken from your Linked Account, taking 3 bank working days to reach your account and will be immediately available on receipt

stevec59

I received the letter from Tesco, phoned them today as I pay in loads of DD's from accounts that require 2 or more DD's, I couldn't remember where all the DD's were coming from, they gave me all the details, they also said that other accounts will probably follow suit, if that's the case I think I'll close all the accounts that I need to and put the money in a fixed rate \ term account, probably get more interest and no hassle.
Makes you winder if Lloys will change there T&C's so that they don't require DD's and SO's will do.

eskbanker

stevec59 wrote: »

I received the letter from Tesco, phoned them today as I pay in loads of DD's from accounts that require 2 or more DD's, I couldn't remember where all the DD's were coming from, they gave me all the details, they also said that other accounts will probably follow suit, if that's the case I think I'll close all the accounts that I need to and put the money in a fixed rate \ term account, probably get more interest and no hassle.
Makes you winder if Lloys will change there T&C's so that they don't require DD's and SO's will do.

No, it doesn't make me wonder if Lloyds will change their T&Cs (on Club Lloyds or any other accounts requiring DDs), why would they?

Even if other institutions followed Tesco on stopping inbound DDs as a means of funding a savings account, the stipulation that interest-bearing current accounts pay out a certain number of DDs is unrelated and for an entirely different purpose, i.e. to encourage take-up by account holders using it as their main current account....

bettz

Just received the letter from Tesco today about DD'S.

It seems its only going to affect 1 of my Halifax accounts so i need to find 2 direct debits??? unless i move some of the house DD's into that account.

Also I've got wasted money in my tesco and TSB accounts which aren't earning anything I've therefore got £3,000 spare.

I've currently got 2 TSB accounts is that the limit unless i set up a joint account??

Or would it be best to open a Nationwide account for 12 months? to get the 5% interest rate

YorkshireBoy

bettz wrote: »

Just received the letter from Tesco today about DD'S.

It seems its only going to affect 1 of my Halifax accounts so i need to find 2 direct debits??? unless i move some of the house DD's into that account.

Also I've got wasted money in my tesco and TSB accounts which aren't earning anything I've therefore got £3,000 spare.

I've currently got 2 TSB accounts is that the limit unless i set up a joint account??

Or would it be best to open a Nationwide account for 12 months? to get the 5% interest rate

I would have thought that was a no-brainer!...and dump the rest in their 5% regular saver. Maybe get your household DDs on Halifax and switch that to Nationwide for a £100 switching incentive...worth around 3 years of Halifax Reward payments...in advance!

Archi_Bald

stevec59 wrote: »

.... they also said that other accounts will probably follow suit.....

what other accounts?

eskbanker

Archi_Bald wrote: »

what other accounts?

Post Orifice, Birmingham Midships, Scottish Windows, etc....?

alternate

The difference is that Tesco let you set up as many DD as you liked - those other accounts let you DD to just one linked account. Often it is integral to how the accounts operate. I am surprised Tesco let it run as long as they did.