Tesco rate reduction later than planned?

chockydavid1983

https://www.moneysavingexpert.com/news/2019/02/tesco-bank-to-cut-interest-on-its-current-account-from-3--to-1-/?utm_content=1551282234&utm_medium=social&utm_source=facebook,twitter

For some reason, I had in mind that this rate was ending in April for existing customers? Says June here. Still not great news though obviously.

eskbanker

The rate guarantee was always announced as expiring in April but they'd never intimated that any rate cut would take effect from then, only (implicitly) that it could.

Since they're obliged by their Ts & Cs to give two months notice of a reduction, it was already too late for them to cut from 1st April, as mentioned in some other threads earlier this month....

molerat

Link in op going to a 404, good link here
https://www.moneysavingexpert.com/news/2019/02/tesco-bank-to-cut-interest-on-its-current-account-from-3--to-1-/

verybigchris

Bit of a moot point now, but the MSE story says:

To get any interest, you need to pay in £750 and pay out at least three direct debits each month – and direct debits to a Tesco Bank savings account don't count. These rules apply to statement months rather than calendar months.

I'm pretty sure that only applies to people taking out new accounts today. I don't pay in anything to my account, have zero direct debits and still get the 3% paid.

eskbanker

verybigchris wrote: »

Bit of a moot point now, but the MSE story says:

To get any interest, you need to pay in £750 and pay out at least three direct debits each month – and direct debits to a Tesco Bank savings account don't count. These rules apply to statement months rather than calendar months.

I'm pretty sure that only applies to people taking out new accounts today. I don't pay in anything to my account, have zero direct debits and still get the 3% paid.

It applies to anyone opening one of these accounts since April 2017.

enthusiasticsaver

verybigchris wrote: »

Bit of a moot point now, but the MSE story says:

I'm pretty sure that only applies to people taking out new accounts today. I don't pay in anything to my account, have zero direct debits and still get the 3% paid.

Same here. I have two Tesco accounts both with £3000 in and no income going in or direct debits. I knew it was going to be on the cards that the interest rate was going down though so will be on the lookout for something else.

Sea_Shell

I read it that the "hoops" would be a requirement on all accounts from June to get the reduced rate. If not met, no interest would be paid.

Let's wait and see what the letters actually say.

chockydavid1983

Thanks everyone.
We'll see come June I guess but at this point, there doesn't seem to be any reason to keep this account beyond June.

Alistair31

Good while it lasted. Let’s hope there’s a good switch offer in June.

chanz4

ford money is a good home

eskbanker

chanz4 wrote: »

ford money is a good home

In what way?

Their only available (non-ISA) account pays the same interest as Tesco's instant access one (1.42%), which would seem a more obvious place for Tesco current account holders to go if they wanted to shift from current accounts to savings products.

For those wishing to make a point of getting away from Tesco, the likes of Marcus (1.5%) would seem a more sensible move, or various others that also offer better interest than Ford....