2 Tesco bank accounts - Do I need 6 Direct Debits?

eskbanker

soulsaver wrote: »

It was never a fixed rate.

Perhaps just semantics; do you see any meaningful distinction between a fixed rate and a guaranteed one?

aj23_2

soulsaver wrote: »

It was never a fixed rate.

Well when I opened it, it was 'fixed at a minimum of 3%' meaning that they couldn't lower it below 3% between April 2017-April 2019. But they were never going to increase it.

keef-WhatStandards

I have two current accounts and don't have any DDs on first account.

Have they changed the T&Cs for new account openings?

eskbanker

keef-WhatStandards wrote: »

I have two current accounts and don't have any DDs on first account.

Have they changed the T&Cs for new account openings?

Yes - a fuller answer is back at post #23....

soulsaver

eskbanker wrote: »

Perhaps just semantics; do you see any meaningful distinction between a fixed rate and a guaranteed one?

You need me to explain the difference between a fixed rate and a guaranteed minimum rate?

eskbanker

soulsaver wrote: »

You need me to explain the difference between a fixed rate and a guaranteed minimum rate?

No, I need you to show me where they use(d) the word 'minimum' in relation to this rate guarantee!

It doesn't feature in the Tesco forum article quoted at post #23 ("You will earn 3% AER credit interest on balances up to £3,000, guaranteed until 1 April 2019"), or their website at https://www.tescobank.com/current-accounts/existing-customers/ ("We guarantee to pay you 3% AER credit interest on balances up to £3,000 until 1 April 2019"), so to me both of these statements are directly equivalent to fixing the rate....

18cc

There may be no obvious difference between a fixed rate and a guaranteed rate but i bet there is a legal difference somewhere!

YorkshireBoy

eskbanker wrote: »

No, I need you to show me where they use(d) the word 'minimum' in relation to this rate guarantee!

They used the word "minimum" in their press release dated 2nd Feb 2017...

The key features include:

Rewarding customer loyalty

• A minimum 3% AER variable interest on credit balances up to £3,000 from 1st April 2017 until 1st April 2019

https://corporate.tescobank.com/25/news/news-releases/another-little-help-for-tesco-bank-customers/?newsid=298

eskbanker

YorkshireBoy wrote: »

They used the word "minimum" in their press release dated 2nd Feb 2017...

True, but when they actually published their guarantee on their website shortly afterwards there was no reference to 'minimum': https://web.archive.org/web/20170205185052/http://www.tescobank.com/current-accounts/

To be honest, even if there was reference to 'minimum' in any binding documentation early on, it seems to me that it's long since been removed, so I'm still unconvinced that it's accurate to say (in any meaningful sense) that it was never fixed....

YorkshireBoy

eskbanker wrote: »

True, but when they actually published their guarantee on their website shortly afterwards there was no reference to 'minimum': https://web.archive.org/web/20170205185052/http://www.tescobank.com/current-accounts/

To be honest, even if there was reference to 'minimum' in any binding documentation early on, it seems to me that it's long since been removed, so I'm still unconvinced that it's accurate to say (in any meaningful sense) that it was never fixed....

I can't remember how they notified customers, but it must have been by letter (and I shredded it!) because I have no email correspondence from that time. But I do remember it being "at least" 3%, ie it could go up but not down. And that's the view the financial press took at the time. Even the MSE main site says "at least" in their article on it, so they shared that view.