Tesco rate reduction later than planned?

badger09

pearl123 wrote: »

Unfortunately, I've already had an account with them and their 5% runs out after one year. However, if I remember rightly if one holds
a current account with Nationwide there is access to 5% regular saver.

You do remember correctly. T&Cs here

https://www.nationwide.co.uk/products/savings/flex-regular-online-saver/features-and-benefits

polymaff

Thank you, Tesco, for maintaining the 3% rate for so long.


... and for not printing on the back of the notifying letters - more fodder for our printer-draft-paper pile.

buyhighselllow

I'm sort of hoping the end of the rate coincides with a bit of a market dip so I can xfer the money into my equity funds.Will help simplify finances further that had gotten too complicated with all these accounts.

SG27

We had a good run with this. Be sad to see my Tesco accounts go.

metrobus

Is it just me or are others strangely happy to simplify their portfolio of accounts/banks albeit with less interest coming in ? This time last year I had about 15 various accounts with 10 banks,that is now down to about 10 with 5 banks although the capital has gone up.
Closing the Tesco CA and transfering £3k to a 2.2% bond with a current bank I hold a bond with cost £24 over a year but I am happy it's 1 less bank I am linked to.

eskbanker

metrobus wrote: »

Is it just me or are others strangely happy to simplify their portfolio of accounts/banks albeit with less interest coming in ?

Not sure it's strange as such - it's almost certainly because of the interest rate reductions that people are shifting away from the current account game, together with the increasingly onerous DD requirements (not impossibly so for those who are motivated enough).

It's not that long ago that quite a few current accounts were paying 3-4% but this is the last survivor (although TSB and Nationwide still pay 5%), so diminishing returns inevitably compromise the value of doing this....

scroogemcduck2

What a pain! Serious decline in current account savings. Santander, Lloyds, Bank of Scotland and now Tesco all cutting rates in the last year or two. Only TSB have gone the other direction, and that was in response to a PR crisis...

bristolleedsfan

scroogemcduck2 wrote: »

What a pain! Serious decline in current account savings. Santander, Lloyds, Bank of Scotland and now Tesco all cutting rates in the last year or two. Only TSB have gone the other direction, and that was in response to a PR crisis...

Could get worse, reductions in interest rates are often followed by more reductions in interest rates, It is what financial organisations refer to as "market conditions"

Cactus_Jack

metrobus wrote: »

Is it just me or are others strangely happy to simplify their portfolio of accounts/banks albeit with less interest coming in ? This time last year I had about 15 various accounts with 10 banks,that is now down to about 10 with 5 banks although the capital has gone up.
Closing the Tesco CA and transfering £3k to a 2.2% bond with a current bank I hold a bond with cost £24 over a year but I am happy it's 1 less bank I am linked to.

Yes! My first though upon reading the letter was some relief at being able to simplify. I find having multiple accounts (especially with money having to move or incentives to use the account for spending) makes sticking to my budget harder.

fred246

I don't understand how banks work. Surely they will have to get millions of pounds (?billions) ready for June. If they want to get rid of customers surely a few months at 2% would make their life easier. I suppose it's all the postage etc. I assumed it would drop to a figure between 1.5% and 3% for a while. At least there are no hard decisions to make.