Direct debits for Tesco savings account

hamupatra

I want to open the Tesco 3% account but it states I need 3 direct debits and pay in £750 per month in order to get 3% on up to £3000. If I have 2x Santander and 1x Nationwide how do I set up the direct debits in order to keep the maximum amount of £3000 in the account?

jimjames

hamupatra wrote: »

I want to open the Tesco 3% account but it states I need 3 direct debits and pay in £750 per month in order to get 3% on up to £3000. If I have 2x Santander and 1x Nationwide how do I set up the direct debits in order to keep the maximum amount of £3000 in the account?

You probably can't between those accounts. You need to move some DD to the Tesco account and then ensure you move funds to keep the balance at £3000. The £750 can be moved in and out again in seconds

soulsaver

FTAOD There isn't a £3K maximum - you can go above £3k - you just don't earn interest on the PORTION above £3K.

Westie983

Hi,

Direct debits are normally set up by businesses to take funds that you owe, there are some accounts that allow you to set up direct debits to fund savings accounts but are few and far between, so you need to think about bills you pay and if they are via DD like council tax and electric and gas for example, you will need to give them your tesco account number and pay them out of that account.

Having Santander and Nationwide, will only give you rewards on those accounts if you use them for your DD, so need to balance up the value of each of those accounts if you dont have enough DD to spread around.

Westie983

PRAISETHESUN

AS mentioned above, DDs for usually setup to business to pay for bills, contracts and things like that. You typically can't set them up between current accounts. You can easily set up standing orders between your Tesco/Santander/Nationwide accounts however to satisfy the minimum £750 pay in.

Check the following thread for ideas on what you can use as to satisfy the DD requirements if you feel like getting a bit more inventive

https://forums.moneysavingexpert.com/discussion/5734632/savings-accounts-accepting-dds&page=1

wiseonesomeofthetime

Bear in mind the 3% on the Tesco current account is only guaranteed until April 2019.

What will happen after that date is unknown at the present time (I believe).

Terry_Towelling

Is there perhaps some confusion between the pay-in requirements and the DDR requirements.

All you need to do is pay in £3K, then set up (for example) your House insurance, water rates and electric bill to be paid by DDR from the Tesco account. You then set up a STO from wherever you keep your main cash to pay the amount of those bills into the Tesco account each month.

To meet the £750 monthly pay-in simply set up a STO to Tesco from one of your other accounts and a same-day STO from Tesco back to your other account. For simplicity you could just set the STO to £750 but in truth you could make it for £750 less what you are putting in to cover your DDRs. Job done!

To make the most of the Tesco account you will need to transfer the monthly interest out to another interest-paying account because (as others have said) anything above £3K doesn't attract any interest.

Nick_C

One problem I had trying to use the Tesco current account for savings is that the DDs needed to come out every statement month. The statement month could change slightly from month to month, so some months I had 4 DDs, some months I only had 2 and didn't get any interest!

I gave up. I now just use my Tesco Current Account for the double points in transactions in Tesco using the debit card. I keep the account at a zero balance, and transfer money across to cover the debit card whenever I use it.

Zero_Sum

Nick_C wrote: »

One problem I had trying to use the Tesco current account for savings is that the DDs needed to come out every statement month. The statement month could change slightly from month to month, so some months I had 4 DDs, some months I only had 2 and didn't get any interest!

I gave up. I now just use my Tesco Current Account for the double points in transactions in Tesco using the debit card. I keep the account at a zero balance, and transfer money across to cover the debit card whenever I use it.

Why not change the DD date?

Ive had a similar problem in that the statement date is 15th & one of my DD's was also 15th. This could be an issue when it falls on a weekend, so a i rang up & changed it to 8th.

Terry_Towelling

Zero_Sum wrote: »

Why not change the DD date?

Ive had a similar problem in that the statement date is 15th & one of my DD's was also 15th. This could be an issue when it falls on a weekend, so a i rang up & changed it to 8th.

I had this same issue. Trouble is, I can't change the DDR date because it is for my credit card and that is out of my hands. It varies from month to month by a few days and so I also had two months without any interest.

I rang Tesco to ask if I could alter my statement month. They said, 'No', but gave me two months worth of interest as an ex gratia payment! I have now moved a different DDR to that account.

alandaniel132

setup a Paypal account, is DD