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Tesco rate reduction later than planned?

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Tesco rate reduction later than planned?

edited 30 November -1 at 1:00AM in Savings & Investments
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chockydavid1983chockydavid1983 Forumite
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edited 30 November -1 at 1:00AM in Savings & Investments
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.
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  • eskbankereskbanker Forumite
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    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....
  • verybigchrisverybigchris Forumite
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    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.

  • eskbankereskbanker Forumite
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    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.
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
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    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.
    Early retired in December 2017

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  • Sea_ShellSea_Shell Forumite
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    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.
    "It's time to start digging up those Squirrelled Nuts"!!!

    * I shall only get involved in new threads, once a dialogue has been established with the OP *
  • chockydavid1983chockydavid1983 Forumite
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    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.
  • Alistair31Alistair31 Forumite
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    Good while it lasted. Let’s hope there’s a good switch offer in June.
  • chanz4chanz4 Forumite
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    ford money is a good home
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • eskbankereskbanker Forumite
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    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....
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