Savings accounts accepting DD's

Eco_Miser

NoodleDoodleMan wrote: »

If Tesco etc. didn't want to engage with multiple low amount DD users then they should have restricted such deposits to accounts by Standing Order only.

Which they have just done.
they probably didn't do that originally because they do want to engage with savers saving quite low monthly amounts, and didn't expect the quite anomalous behaviour of the multi-current account brigade found on this forum.

surreysaver

Eco_Miser wrote: »

Which they have just done.
they probably didn't do that originally because they do want to engage with savers saving quite low monthly amounts, and didn't expect the quite anomalous behaviour of the multi-current account brigade found on this forum.

Which Tesco are just as guilty themselves of by having higher interest current accounts with direct debit conditions attached.

Eco_Miser

surreysaver wrote: »

Which Tesco are just as guilty themselves of by having higher interest current accounts with direct debit conditions attached.

No, Tesco don't open current accounts with multiple other banks, then meet the conditions for high interest, or bonus or waived fees by making small DDs to a savings account in their own name.

All the bank accounts requiring DDs, including Tesco's are intended to attract customers who will use the account as a normal current account, and can be cross-sold or up-sold products that will make the bank money.

Yes they are aware that a few will use them as savings accounts, but then the accounts get a mention on MSE, and it's no longer just a few people who can spot a bargain for themselves, it's a mass of people who only need to follow written instructions.

The DD requirements were introduced to reduce the number merely using the accounts as savings accounts, but once again, written instructions for a workaround were provided.
Many savings accounts that could be funded by direct debit were pulled, whether because of a high number of low value DDs, or because of changes in the banking regulations, I don't know. As each went, the pressure on those remaining grew, and next January probably the last will go.

Soon only legitimate DDs (council tax, TV licence, utilities, subscriptions,credit cards, etc) will remain.

NoodleDoodleMan

Which they have just done.
they probably didn't do that originally because they do want to engage with savers saving quite low monthly amounts, and didn't expect the quite anomalous behaviour of the multi-current account brigade found on this forum

Which can just as easily be achieved by Standing Orders, so no drama.

Chrisv

https://www.postoffice.co.uk/savings-accounts/online-saver

veryintrigued

Chrisv wrote: »

https://www.postoffice.co.uk/savings-accounts/online-saver

Brilliant.

May I suggest people who think there isn't an MSE impact are living in Cloud DD land!

bigadaj

veryintrigued wrote: »

Brilliant.

May I suggest people who think there isn't an MSE impact are living in Cloud DD land!

Well it's not definitive.

Post office financial product has issues, hold the front page I woudn t have thought.

veryintrigued

bigadaj wrote: »

Well it's not definitive.

Post office financial product has issues, hold the front page I woudn t have thought.

Aye you're probably right.

Product that's been available for years (over multiple issues) now not available days after the Tescos DD shoutathon.

:rotfl:

darkidoe

veryintrigued wrote: »

Aye you're probably right.

Product that's been available for years (over multiple issues) now not available days after the Tescos DD shoutathon.

:rotfl:

Classic cognitive bias. Two distinct events happening in sequence doesn't indicate cause and effect even if you can build a narrative to support it.

veryintrigued

darkidoe wrote: »

Classic cognitive bias. Two distinct events happening in sequence doesn't indicate cause and effect even if you can build a narrative to support it.

Classic head in sand effect!