Tesco Internet Saver VS Post office Online Saver

mr-smith

Looking to put my money into a savings account that I can dip in and out of when I like rather than having it all in my current account and these are the two contenders at the moment -


postoffice.co.uk/savings-accounts/online-saver

tescobank.com/savings/flexible/internet-saver/index.html


Tesco seems to have the slightly higher rate at 1.42% but that includes a bonus rate payment after 12 months, without that it is only 0.87 at a fixed rate. And is paid annually in March


Post office says -


"Annual option 1.38% gross/AER variable. Rate includes a 1.13% gross fixed rate bonus for 12 months from account opening. After 12 months the rate will revert to our underlying rate, currently 0.25% gross/AER variable. "


Im a little unclear if that means something similar or is just saying that the 1.38 rate is only for the first year.


Which of the two do you think is the best option ?

eskbanker

They're both saying much the same thing, i.e. that the interest rate is boosted by a bonus percentage in the first 12 months, after which interest will be paid at a lower rate.

Based on the higher rate, and the negative comments about PO on here, I'd go for Tesco, and have put my money where my mouth is!

badger09

mr-smith wrote: »

Looking to put my money into a savings account that I can dip in and out of when I like rather than having it all in my current account and these are the two contenders at the moment -


postoffice.co.uk/savings-accounts/online-saver

tescobank.com/savings/flexible/internet-saver/index.html


Tesco seems to have the slightly higher rate at 1.42% but that includes a bonus rate payment after 12 months, without that it is only 0.87 at a fixed rate. And is paid annually in March


Post office says -


"Annual option 1.38% gross/AER variable. Rate includes a 1.13% gross fixed rate bonus for 12 months from account opening. After 12 months the rate will revert to our underlying rate, currently 0.25% gross/AER variable. "


Im a little unclear if that means something similar or is just saying that the 1.38 rate is only for the first year.


Which of the two do you think is the best option ?

Tesco by a mile

I haven't even looked at the interest/bonus situation but I do know that there are multiple threads detailing problems running the PO account - especially concerning withdrawals.

Another to look at is this one
https://www.marcus.co.uk/uk/en/savings?prd=os&chl=ps&schl=psg&cid=Brand_CoreBrand_Marcus_X_Exact&agp=Brand_CoreBrand_Marcus_Bank_X_Exact&kid=marcus_bank&mtype=e&gclid=EAIaIQobChMI-62Ao4qY4AIVDpPtCh1PiAj_EAAYASAAEgJjefD_BwE&gclsrc=aw.ds

EDIT apologies for very long URL

mr-smith

badger09 wrote: »

Tesco by a mile

I haven't even looked at the interest/bonus situation but I do know that there are multiple threads detailing problems running the PO account - especially concerning withdrawals.

Another to look at is this one
ASAAEgJjefD_BwE&gclsrc=aw.ds[/url]

EDIT apologies for very long URL

I'd rather stick to known banks really, Although that is tempting

ColdIron

Marcus is owned by Goldman Sachs, a gigantic global company, hardly not well known. I would choose that or Tesco over the PO any day of the week

It too has a bonus of 0.15% and a standard rate of 1.35%
https://www.marcus.co.uk/uk/en

quirkydeptless

mr-smith wrote: »

I'd rather stick to known banks really, Although that is tempting

The Marcus account is run by Goldman Sachs, who are rather more well known in the world for banking than Tesco or the Post Office.


I've have savings with all three, and if you don't want to go Marcus, then from your two options I would choose Tesco.


There is one advantage however that the Post Office account has over the others though, is that it can be funded by Direct Debit, if they suits you.

quirkydeptless

ColdIron wrote: »

Marcus is owned by Goldman Sachs

Beat me by seconds :-)

mr-smith

quirkydeptless wrote: »

The Marcus account is run by Goldman Sachs, who are rather more well known in the world for banking than Tesco or the Post Office.


I've have savings with all three, and if you don't want to go Marcus, then from your two options I would choose Tesco.


There is one advantage however that the Post Office account has over the others though, is that it can be funded by Direct Debit, if they suits you.

Il take a look at the Marcus one then, Regarding direct debits it would be more just putting what I can away in there each week rather than a set amount so that wouldn't be any loss really.

JulieM

My Tesco Internet Saver will be coming to an end shortly and they've given me 750 clubcard points as a thank you. Not sure if this is standard procedure but might be worth bearing in mind.

Paul_DNAP

quirkydeptless wrote: »

The Marcus account is run by Goldman Sachs, who are rather more well known in the world for banking than Tesco or the Post Office.

Having said that though, Tesco Bank is half owned by The Royal Bank of Scotland, who are no novices themselves. Wheras Goldman Sach's history is almost all in top end global investment banking rather than personal banking.

bowlhead99

mr-smith wrote: »

I'd rather stick to known banks really, Although that is tempting

Marcus is a brand owned by Goldman Sachs, so they are a well known financial institution (one of the most well known in some parts of the world), just haven't had their UK savings operation open for long. Your money would be safe with them and on the positive side, as they try to build their profile her in the UK you can reasonably expect them to want to be pretty good on the customer service side otherwise they won't keep customers

1.5 including a small bonus for a year is "in theory" quite a bit better than 1.45 including a big bonus, because after the bonus dries up, the ongoing rate you're left with is quite a bit better. However, they can still vary their underlying rate (aside from the bonus bit) up or down as they see fit, and in a year's time there may be some other rival offering a much better rate with or without a bonus.

FWIW I have a saving account with Tesco and it's fine, and have also had other useful products from them like credit card and loans. If the bonus runs out at the end of the year you can open another one in seconds.

Marcus, though perfectly credible, are more of a one-trick pony as savings is all they offer you. As the account only pays 0.05% more than Tesco - even if you don't pay tax on your interest, that's only a fiver per £10000 per year - I haven't bothered setting up an account with them, it won't be life-changing enough for the hassle of setting up a relationship with yet another financial institution.