Tesco internet saver increase in rate

Malchester

Hi. Heads up to Anyone with a Tesco Internet Saver instant access account - they have increased the overall rate for new accounts to 1.34% (including bonus rate for 1 year). Anyone on lower rates can open a new account, transfer from an old account and start the year again. My 1.35% is coming to an end soon so have opened the new one and transferred the funds across, then rang Tesco Bank to close the old account and receive the interest

ColdIron

It's been available since 20/07. Don't forget that it usually takes 48 hours or so before you can withdraw from a newly opened Internet Saver so I'd wait a couple of days before depositing all your cash and closing the old account

youngretired

I opened mine last Friday and have only been able to transfer out since Thursday due to making a phone call, as they are very busy and so the blocks on the accounts are not necessarily being done within the 48 hours like normal.

System

So your money is still going to be worth 1-1.5% less in real terms in a year's time. If the interest rate is lower than inflation you need to have your money elsewhere or you may as well spend it because what it buys in a year's time isn't as much as it'd buy today.

eskbanker

Tarambor wrote: »

So your money is still going to be worth 1-1.5% less in real terms in a year's time. If the interest rate is lower than inflation you need to have your money elsewhere or you may as well spend it because what it buys in a year's time isn't as much as it'd buy today.

Where do you suggest, for savers looking for (a) capital protection, (b) FSCS protection and (c) easy access?

Zanderman

Tarambor wrote: »

So your money is still going to be worth 1-1.5% less in real terms in a year's time. If the interest rate is lower than inflation you need to have your money elsewhere or you may as well spend it because what it buys in a year's time isn't as much as it'd buy today.

As Eskbanker says, not entirely helpful! Unless, of course, you mysteriously know what the OP is using the Tesco account for and also know what other accounts they have or don't have, perhaps with higher interest but perhaps full up, or perhaps just this one but needing easy access..

As for saying you might as well spend it now..I would venture to assume the OP wants to, er, save some money for something in the future. Seems fairly likely. And if that money loses some value relative to inflation that's just how it is. But at least the Tesco account concerned offers a rate half-way towards inflation, which is more than most easy access accounts do.

surreysaver

Tarambor wrote: »

So your money is still going to be worth 1-1.5% less in real terms in a year's time. If the interest rate is lower than inflation you need to have your money elsewhere or you may as well spend it because what it buys in a year's time isn't as much as it'd buy today.

No point buying a pie now to eat in a year's time, as it'll have gone off by then

Malchester

Thanks Zanderman and eskbanker for your support in relation to the comments by tarambor who makes wild assumptions that are all wrong. Everyone needs cash available immediately for emergencies and that is exactly what I use this account for. Yes the rate is below inflation, I know that but that is, at the moment the price you pay for easy access. Other money is in other places with varying degrees of risk and timescales for access. Prudent planning and saving I call it

LobsterMemory

Though you seem to have closed an account early paying 1.35% to join one paying 1.34% according to the OP.

Maybe there's a nuance I've missed or there's a typo but it's confused me

Malchester

As i said in my original post my 1.35% is about to end so started a new 1 year account to take over. Sensible planning!!!!!!

sparkey1

If you are a regular saver, try the Virgin Money Regular savings account at 2.25%. Operated over the web you can withdrawl same day to a nominated account if you need emergency money. Deposit mothly by standing order.