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2 Tesco bank accounts - Do I need 6 Direct Debits?
Comments
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francismay wrote: »Thanks. guaranteed until 1 April 2019.
is not 18th April right?
Eskbanker was explaining that although there is no 3% interest guarantee relating to accounts opened after 19th October, effectively Tesco are guaranteed to pay 3% until 18th April.
This is because they're committed to 2 months notice of rate reductions. 2 months from today is 18th April;)0 -
so if Tesco bank didn't make any announcement on the 3% interest rate, it will continue as usual (at least need 2 months notice)0
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I'm not really sure there are yet more ways of paraphrasing the same information....alandaniel132 wrote: »so if Tesco bank didn't make any announcement on the 3% interest rate, it will continue as usual (at least need 2 months notice)their Ts & Cs do clarify that they commit to two months notice for interest rate reductions (which they haven't announced yet)they're committed to 2 months notice of rate reductions0 -
Tesco now say 3% AER/2.96% Gross variable credit interest on balances up to £3,000. for those opening a current now.
The fixed rate does not apply to those accounts.
After 1 April the old current accounts will no longer have a fixed interest rate and should revert to the current variable rate unless or until a change of interest rate is announced.0 -
Again it's perhaps a bit of a moot point when there's no difference between the fixed and variable rates, but to the best of my knowledge there is no such stipulation that April 1st triggers a 'reversion' to a different rate in the way that some mortgages do, so if the current variable rate was, say, 2%, there's nothing that I'm aware of that would automatically cause pre October 2018 accounts to drop to that lower level at any stage and so they'd need to give two months notice of any such decision.After 1 April the old current accounts will no longer have a fixed interest rate and should revert to the current variable rate unless or until a change of interest rate is announced.0 -
Again it's perhaps a bit of a moot point when there's no difference between the fixed and variable rates, but to the best of my knowledge there is no such stipulation that April 1st triggers a 'reversion' to a different rate in the way that some mortgages do, so if the current variable rate was, say, 2%, there's nothing that I'm aware of that would automatically cause pre October 2018 accounts to drop to that lower level at any stage and so they'd need to give two months notice of any such decision.
Can they clim that saying the fixed rate is until 1 April is more than 2 months notice?
As the variable rate is currently 3% it doesn't matter they don't need to say anything at the moment. only if the variable changes.
They could , of course, continue the fixed rate to a future date although unlikely.
Until they make an announcement it is all speculation.0 -
No, their Ts & Cs state that "If we're going to decrease the credit interest rate on your account, we'll tell you at least two months in advance", and the fact that the rate ceases to be fixed on a specific date doesn't signify that it will change from then (it merely opens up the possibility), so they'd still have to give two months notice if they wish to change it.Can they clim that saying the fixed rate is until 1 April is more than 2 months notice?
Not really - the point I was making is that simply by virtue of a fixed period ending, that doesn't inherently mean that these older accounts will automatically align with the variable rate offered on newer accounts, i.e. they could make completely independent announcements about future rates for older and newer accounts, even though both happen to have the same rate at the moment. They don't have the concept of a 'standard variable rate' (to which fixed rate products revert at the end of the fixed period) in the way that mortgage providers do, and have form for running accounts with different rates according to date of opening, with their Internet Saver product.As the variable rate is currently 3% it doesn't matter they don't need to say anything at the moment. only if the variable changes.
Indeed, but given their commitment to notice, no rate reductions can be applied to any of these accounts until on or after 19 April....They could , of course, continue the fixed rate to a future date although unlikely.
Until they make an announcement it is all speculation.0 -
No, their Ts & Cs state that "If we're going to decrease the credit interest rate on your account, we'll tell you at least two months in advance", and the fact that the rate ceases to be fixed on a specific date doesn't signify that it will change from then (it merely opens up the possibility), so they'd still have to give two months notice if they wish to change it.
Not really - the point I was making is that simply by virtue of a fixed period ending, that doesn't inherently mean that these older accounts will automatically align with the variable rate offered on newer accounts, i.e. they could make completely independent announcements about future rates for older and newer accounts, even though both happen to have the same rate at the moment. They don't have the concept of a 'standard variable rate' (to which fixed rate products revert at the end of the fixed period) in the way that mortgage providers do, and have form for running accounts with different rates according to date of opening, with their Internet Saver product.
Indeed, but given their commitment to notice, no rate reductions can be applied to any of these accounts until on or after 19 April....
eskbanker I hope you're now committed to changing this date on a daily basis, until Tesco make their rate reduction announcement:D0 -
It was never a fixed rate.0
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