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

torchie

Good while it lasted but the drop from 3 to 1% was steeper than I expected. We have four of the legacy accounts so will look for a new home for the money after mid June. However, we will retain one of the accounts with a minimal balance because the Debit Card has proved very useful for making high-value purchases when credit cards cannot be used, thereby earning substantial numbers of Clubcard points.

aj23_2

worldtraveller wrote: »

In my case, with the 'old' scheme, with no need to pay in anything, nor have any DD requirement, it's certainly worth keeping for the extra Tesco points, both instore and petrol. This still makes it significantly better for me than just the new 1% interest.

The Tesco current account rewards calculator is quite useful:

https://www.tescobank.com/current-accounts/rewards/

Same here. I'll keep a bit to cover my petrol. Works out to be about enough to get 1 tank through vouchers a year, every little helps.

Xs500

Wiill withdraw all but £1 in each account. Useful to have sleeper accounts available ready for future switch opportunities. Also Tesco may come up with a competitive saving account.

Shakin_Steve

superlative wrote: »

Hmm, I have one of the 'old' accounts that pays 3% without needing me to pay in any minimum or have any direct debits. I wonder if this applies to this account too? I guess I'll wait and see what letter I get...

Letter from Tesco today:

"There won't be any other changes to the way you earn interest, so you'll continue to earn credit interest without any conditions attached".

sheramber

karlie88 wrote: »

When the account launched a few years ago, it had a £5 monthly fee unless you paid in £750/month. So it didn't take care of itself from day one.

That was the relaunch after they closed the account to new applications as they were oversubscribed.

Those of us who opened the original accounts had no requirements to service the accounts

Xs500

Having several regular saver accounts and with other accounts lowering their interest after a year etc, I found it easy to miss maturity and action dates. I now use Google calendar to remind me with an email a couple of days before action is needed.
And mse to keep me updated on the best offers around, thank you Martin

Mummy2cheekymonkeys

I opened a tesco account on Monday because of the 3% rate. I received my debit card through this morning so I've just applied to switch it to first direct and will open a regular saver with them but not sure where else to look, me and hubby have tsb accounts and I have 1 month left of 5% with nationwide before that drops to 1%

karlie88

sheramber wrote: »

That was the relaunch after they closed the account to new applications as they were oversubscribed.

Those of us who opened the original accounts had no requirements to service the accounts

I'm afraid both you and aj23 are incorrect.

The current account was launched in June 2014 and had a £5 monthly fee attached to it unless you paid in £750+ per month:

https://www.thisismoney.co.uk/money/saving/article-2652962/Tesco-Bank-current-account-offers-3-good.html


Over a year later, the £5 monthly fee was scrapped:

https://www.thisismoney.co.uk/money/saving/article-3235271/Gloves-Tesco-Bank-scraps-5-current-account-fee.html


So there was a requirement to 'service' the account for a significant period of time for early adopters of the account, although this was easily achieved with SOs.

Nick_C

pinkdalek wrote: »

Rate tarts the whole lot of you. KInd of people who whinge and moan at being loyal to their existing bank and getting nothing and then moving away. Spend it I say, you can't take it with you, misers the whole lot of you scrimping around faffing moving money for the sake of a few percent. Get a life.

Absolutely, and proud to be so. It is Money Saving Expert after all.

YorkshireBoy

pinkdalek wrote: »

Rate tarts the whole lot of you. KInd of people who whinge and moan at being loyal to their existing bank and getting nothing and then moving away. Spend it I say, you can't take it with you, misers the whole lot of you scrimping around faffing moving money for the sake of a few percent. Get a life.

Some of us have a life...and also have (or had!) around £2,500 per year interest coming in from "faffing". It is possible to have both.