Tesco Bank to cut current account interest from 3% to 1% - MSE News

adindas

Sea_Shell wrote: »

We can only assume that Tesco have analysed their accounts and know how many £££'s are likely to walk out the door in June.

Well you'd hope they have, otherwise they might get a shock!!

It is a loss leader. So people should already anticipate that they will actually reduce the interest rate. The same with what LBS did a few years ago.

The era of multiple current accounts might be ending.

EachPenny

colsten wrote: »

Two more accounts ready to be switched from June 14 onwards. Just need a switching offer that I can still use :cool:

My two are pre the requirement for monthly pay-in and DD's. Unless that rule is changing I'll keep the accounts but reduce the balance to a minimum with minimal activity to keep them open... just in case the decision is reversed at some point.

Nothing official on the Tesco website about any change in requirements to earn interest for those legacy accounts (yet).

adindas

colsten wrote: »

Two more accounts ready to be switched from June 14 onwards. Just need a switching offer that I can still use :cool:

Switch to where ?. Keep in mind if you have got a switching incentive they are unlikely to allow you to have another incentive for at least a couple of years. And presumably, like some people on this forum you have swept them all.

colsten

MSE wrote:

.....direct debits to a Tesco Bank savings account don't count.....

That's not overly surprising, as Tesco stopped doing direct debits to their savings accounts months ago

YorkshireBoy

adindas wrote: »

Switch to where ?. Keep in mind if you have got a switching incentive they are unlikely to offer you another incentive for at least a couple of years. And presumably, like some people on this forum you have swept them all.

How about the latest Santander offer? A circa £30 stake wins you £100 (£200 if you keep it in the family).

Vortigern

YorkshireBoy wrote: »

How about the latest Santander offer? A circa £30 stake wins you £100 (£200 if you keep it in the family).

£30 stake? Where does that come from?

YorkshireBoy

Vortigern wrote: »

£30 stake? Where does that come from?

Two months loss of Tesco interest on two accounts. But that would be halved by shifting the £6K to a 1.5% savings account.

Just thinking outloud.

djpailo

Polly05 wrote: »

I'm not sure it's worth me opening another account for half a percent more... ��

1% on £3000 is £30 whereas 1.5% on £3000 is £45. Now imagine you have £6000 (over two Tesco accounts). The extra .5% gives you £30. So you are willing to sacrifice £15/£30 for about 5 minutes of work in opening a Marcus account.

The additional .5% is most certainly nothing to be snuffed at if you were using the Tesco to its maximum potential (i.e. had £3k in it).

Rich2808

As stated above some of us have been with Tesco long enough to get the 3% rate with no required monthly pay in or direct debits required.

Can I assume that this will continue i.e. the rate drops to 1% but for us old timers we still won't need to have any direct debits or pay in £750 a month from 14 June? Has this been clarified?

enthusiasticsaver

That is a shame. My two Tesco's current accounts are old ones so no funding in or direct debits. I have a Tesco internet paying 1.45% so I guess I will move the £6k there in June unless something else comes up.