Tesco current account DD query

Bookowl

Hi.
Trying to get my finances in order for 2019. I've 3 direct debits ready to be used for the tesco current account. 2 charity ones and 1 gym membership. To get the full 3% on £3k do I put in £2250 on the account opening and then within that month put in another £750 to reach the £3k limit? And then take it out a few days later?
Is a statement month with tesco from when you open the account?

radoslaff

Hi Bookowl,


In order to get the full 3% on £3k you better put in £3k on account opening (plus the amount needed for the three DDs) and keep it there for the whole period. You can put in another £750 any time during the month and withdraw them immediately after they hit the account. And yes, for Tesco bank the statement month is from account opening and not a calendar month.

aj23_2

If you want to get the max. interest, put £3000 in, plus the total of your direct debits (so as each one comes out during the month, at the end of the month it will be back to £3000) and put in £750 during the month then take it back out the next day or something.

You'll lose out on a few pounds a month doing it how you propose.

clivep

Easiest way to maximise Tesco for interest (if you have the cash available)...


Open 2 x current accounts with £3K each.


Set up monthly standing orders for £750 each way between a/cs on a given day in the month.


Open 2 x savings a/cs with BM or PO then set up weekly DDs for £1.50 odd to soak up the interest on the Tesco current a/cs.

soulsaver

Bookowl wrote: »

Hi.
Trying to get my finances in order for 2019. I've 3 direct debits ready to be used for the tesco current account. 2 charity ones and 1 gym membership. To get the full 3% on £3k do I put in £2250 on the account opening and then within that month put in another £750 to reach the £3k limit? And then take it out a few days later?
Is a statement month with tesco from when you open the account?

Sounds like you're trying to avoid going over £3k?

You can go over £3k... You still get 3% on £3k, but no interest on the portion above £3k.

aj23_2

You need to keep more than £3000 to make sure it doesn't go under, otherwise you will lose out on interest.

Katiehound

You could also open a Tesco instant access saver (was paying 1.45% for the 1st year) and skim any excess into that. Really easy to move money.

Of course if you need more DDs (3 more for a second account) then PO & BM savings are a good suggestion.
Another one I use is Park Christmas savings @ £1.60 ish pm (not FOS covered) - buys me £20 M&S vouchers.

As already pointed out the account needs to have a constant balance of £3k for maximum interest

BoGoF

And bear in mind the 3% was only guaranteed to April 2019, so who knows what it will pay after that date.

beefturnmail

BoGoF wrote: »

And bear in mind the 3% was only guaranteed to April 2019, so who knows what it will pay after that date.

My guess is some number less than 3%

ColdIron

Katiehound wrote: »

You could also open a Tesco instant access saver (was paying 1.45% for the 1st year) and skim any excess into that. Really easy to move money.

The Tesco Instant Access Savings Account pays 0.40%, you probably meant the Internet Saver at 1.45%

Katiehound

ColdIron wrote: »

The Tesco Instant Access Savings Account pays 0.40%, you probably meant the Internet Saver at 1.45%

Yes, sorry. I wasn't looking at the Tesco screen-it is the Internet saver (but it is instant access)- with 1.45% for year one.