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

eskbanker

Rich2808 wrote: »

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?

I don't believe it's been clarified - the MSE article can be read as implying that everyone will need DDs and monthly funding, but I don't see anything from Tesco that suggests that.

However, it's surely a moot point, why would anyone jump through hoops to earn 1% on a current account when better can be achieved elsewhere?

NoodleDoodleMan

I don't believe it's been clarified - the MSE article implies that everyone will need DDs and monthly funding, but I don't see anything from Tesco that suggests that.

I didn't take that implication from reading the article.

However, as somebody else spotted, the puzzling reference about Direct Debits to Tesco savings account caught my eye - they were stopped under new Terms & Conditions effective April last year, not exactly breaking news !!!

We have the legacy accounts with no monthly pay in or DD requirements, so I suspect I'll leave a nominal £1 in each account come June to keep them open, and wait out to see what transpires.

This drop in interest rates was on the cards, no surprise, although I thought they might match other current accounts that offer 1.5%.

superlative

Polly05 wrote: »

So you'd be a new customer and would only get it til Friday...

Annoyingly, I opened a new (second) account a few days ago - although I don't have an account number yet as apparently I have to get the debit card through first. I wonder whether I'll be treated as a new customer on that account? I assume not, as when I opened it it said I was getting 3% - and I was an existing customer at that point.



We'll see.

eskbanker

NoodleDoodleMan wrote: »

I don't believe it's been clarified - the MSE article implies that everyone will need DDs and monthly funding, but I don't see anything from Tesco that suggests that.

I didn't take that implication from reading the article.

Fair point, and careless wording on my part - it doesn't necessarily actually imply that but is at least open to interpretation in how it discusses the account's features after the change:

The Tesco Bank account, which is currently one of our top picks for current account savings, will no longer be as competitive when the interest rate drops. Here are the need-to-knows for the account:

• It will pay 1% AER variable on up to £3,000 per account.
  
  
• To get any interest, you need to pay in £750 and pay out at least three direct debits each month...

However, as always, it's Tesco's wording that matters, not the way it's spun by other sites!

ceredigion

The Marcus account is variable rate , will they drop the rate given the sudden influx of new money or the fear of that money. Rhetorical question.
Tesco savings account currently at 1.42% has a guaranteed element of 0.87%. Also will it be maintained.
On that bases I have just opened a new internet saver for each of us if not needed no harm done.

Nick_C

Was good while it lasted. I will be keeping one of my accounts going, simply for the double Club Card points when shopping in Tesco or buying fuel with my Tesco Debit Card.

trynsave

My two are old ones as well. Oh well, looks like I'm going to have to drip feed the £6k into my mortgage. No bad thing. Was same rate so decided to keep it as savings for liquidity. No point now. Have enough other rainy day cash at rubbish 1.5% to not need any more!

NoodleDoodleMan

However, as always, it's Tesco's wording that matters, not the way it's spun by other sites!

The MSE article has now been updated - same day as published.

I suspect somebody else has clocked the ambiguous wording and it has been revised.

Zero_Sum

My 2 are basically stooze pots. Ive got a PO account paying 1.45% so will probably just shift cash there. Probably use one for switching bonus then keep other for clubcard perk.

dcs34

adindas wrote: »

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.

Ironically enough, Tesco might soon feel the need to introduce a switching incentive to entice new (or returning) customers to a below-market rate product...