TSB to increase classic plus rate to 5%

sabretoothtigger

LuSiVe wrote: »

So was giving us 5% initially and then taking it away.
And reducing the amount that earned the interest from £2000? to £1500.

The excuse for that was during that time the BOE reduced rates. Its normal for a bank to maintain their rates in line with BOE.

however clipping 2% was more their own choice. If its going to stick for existing 'loyal' customers then I can hardly say anything bad about them overall.
Its in their own interest:money: to get a good working system

No_6

3% to 5% on £1500 is not a life changer for savings accounts

Nicholas

No_6 wrote: »

3% to 5% on £1500 is not a life changer for savings accounts

No it isn't. But to quote a well known supermarket, 'every little helps'.

binaryuniverse

No_6 wrote: »

3% to 5% on £1500 is not a life changer for savings accounts

Worth about an extra £30 a year.
All those extra littles go towards a bigger whole.

EachPenny

RG2015 wrote: »

I am talking about the TSB website where it says:

Applying for TSB products online
To build a better bank for you, we’re currently upgrading our systems. You can still open new accounts in our branches and we're introducing our products online over the coming weeks.
We’ll keep this page updated so you know when you can apply again.

I was in my local branch today and asked about the possibility of applying for a credit card. The response was not to even attempt it at the moment. I also asked about making an appointment to apply and was told the appointments system is not working either.

castle96

"3% to 5% on £1500 is not a life changer for savings accounts "

depends on how may accounts you've got

tempus_fugit

No_6 wrote: »

3% to 5% on £1500 is not a life changer for savings accounts

It more than makes up for the reduction in interest rate on the Lloyds account.

eskbanker

castle96 wrote: »

"3% to 5% on £1500 is not a life changer for savings accounts "

depends on how may accounts you've got

Not sure if that's intended as flippant but as pointed out above, it's worth £30 per account per year, so even if you had a hundred filled accounts, you'd be earning an extra £3K a year. However, in order to do that you'd already have £150K of capital saved, so however you slice it, 2% really isn't a life changer....

TartanSaver

Given that many on here have 2 of these accounts with £1500 in each, and never do anything with them other than transfer the required £500 and take out the interest, this probably hasn't affected many regulars on this forum too much other than gaining from the 5% from now on...

That said, the fact they're still having issues is a bit grim for people who actually use TSB as a primary day-to-day bank account. I carry out my transfers manually. Well over a week after the problems first started, it took me 3 days of attempts to recover my £500 + interest from each account. The alternative was not receiving interest for April.

Consumerist

eskbanker wrote: »

Not sure if that's intended as flippant but as pointed out above, it's worth £30 per account per year, so even if you had a hundred filled accounts, you'd be earning an extra £3K a year. However, in order to do that you'd already have £150K of capital saved, so however you slice it, 2% really isn't a life changer....

Looking at what Lloyds group have done recently, it could be argued that the rate otherwise might have reduced to 1.5% AER to match. So we might potentially be 3.5% pa better off in the longer run.