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TSB to cut interest rate on its current account to 3% - MSE News
Comments
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As has already been pointed out, your OP claimed that "One way to maintain 5% with TSB is to open the linked 2% Monthly Saver". Now you have changed your story and are claiming that it would be possible to continue getting the same amount of money out of TSB after the rate cut on the TSB Plus, by simply opening a TSB RS.Customers currently get 5% which is about £74 a year.
It's being cut to 3% which is about £45 a year.
Their linked 2% Monthly Saver, at the end of the 12 months, would generate about £28. So, like I said in my OP about being over the course of 12 months, a customer could still maintain what they get now by operating both accounts and still generate about £70-£75 from TSB should they desire to over 12 months starting from when the rate drops.
But even that doesn't make any sense.
Those who don't already use the TSB RS would, for starters, have to find another 12 x [STRIKE]£200[/STRIKE] £250, and not have any other place that pays better than 2% AER on [STRIKE]£200[/STRIKE]£250/mth. There are, of course, numerous such places at present. Off the top of my head, these other places take at least £1,250 a month between them, and this doesn't even include the Virgin RSs and other local outfits yet.
Why would those who do have the spare money and who have all other places filled wait with a TSB RS until the rate of the TSB Plus gets cut? They'd most likely already be into their 2nd TSB RS by now, anyway. I for one am. So I won't be getting the same amount of money out of TSB after the TSB Plus rate cut as I did before. All that is due to the simple fact that 3% AER is less than 5% AER.
As I said, stop digging. Though I appreciate you probably enjoy demonstrating your ignorance and would like to continue doing so.
[STRIKE]As an aside, a 2% AER Regular Saver with a max £200/mth deposit pays max £25.92 in interest.[/STRIKE]irrelevant, sorry0 -
As an aside, a 2% AER Regular Saver with a max £200/mth deposit pays max £25.92 in interest.
No reason to doubt you on this point specifically, but the £28 return is mentioned as the monthly saver allows £250 per month. TSB website says that gives you £28.33.
As you have the account, i’m guessing they have changed the monthly deposit allowance since you opened it.0 -
They use a pretty poor example though, ie open on the 1st March and then fund it nearly a month later on the 25th of March.No reason to doubt you on this point specifically, but the £28 return is mentioned as the monthly saver allows £250 per month. TSB website says that gives you £28.33.
In practice this account, with max funding on the same date each month, will return at least £32.50, and a good bit more if opened on the 25th and then funded with 13 x £250 payments.
Which means, of course, that aj23 will now say it's better than they originally claimed because, at £45 plus £32.50, the combo will now return £77.50, which is £3.50 more than the TSB relationship previously did.
And then we're back to square one!0 -
Oops.No reason to doubt you on this point specifically, but the £28 return is mentioned as the monthly saver allows £250 per month. TSB website says that gives you £28.33.
As you have the account, i’m guessing they have changed the monthly deposit allowance since you opened it.
Not sure why I thought the TSB RS is £200/mth. I should obviously know better. Egg on face!! Thank you for correcting me.0 -
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YorkshireBoy wrote: »Too much recent Santander activity?
(We're 3 down and 2 to go now...each)
Saffron. :cool:0 -
Now that's how to accept a justified correction with grace and good humour, rather than entering a state of deluded denial, flinging all the toys out of the pram and lashing out in all directions at those pointing out the error! A lesson there for some, I feel....Oops.
Not sure why I thought the TSB RS is £200/mth. I should obviously know better. Egg on face!! Thank you for correcting me.0 -
Not in the slightest but I'm not stupid enough to think something said in an interview is ever going to trump what the account terms and conditions state.....the ones I agreed to. For me, the increase to 5% was a bonus....good while it lasted.
And I tend not to get to worked up over £2.50 a month.
So you don't think it's fine for banks to lie "in the slightest", but you think it's perfectly fine for banks to lie if their T&Cs state something different?
Right, that makes perfect sense...
Though as you appear to be close to lying in order to try and make your point more powerful (you're not a moron - you know full well that it wasn't an off-the-cuff remark in one interview, it was repeated over and over, on TV and in writing), perhaps it actually does make sense!0 -
Look:
It is quite easy in life
Whenever anyone or any corporate makes a statement, the rules are simple
Focus on what they are NOT saying rather than what they are.
When I heard this one from the TSB I immediately asked myself OK so how long will it last then?
Same with David Cameron's quote that we have no plans to raise VAT at the moment - which I took to mean the plans will be in place the day after0 -
Look:
It is quite easy in life
Whenever anyone or any corporate makes a statement, the rules are simple
Focus on what they are NOT saying rather than what they are.
When I heard this one from the TSB I immediately asked myself OK so how long will it last then?
Same with David Cameron's quote that we have no plans to raise VAT at the moment - which I took to mean the plans will be in place the day after
Phrase no plans was not used in this instance
https://www.bbc.co.uk/news/av/business-43906346/tsb-boss-paul-pester-says-bank-is-on-its-knees
Listen from 5:28 onwards.
BBC Reporter: "So you're going up to 5% interest on current accounts? For how long?"
Paul Pester: "That rate doesn't change! So we're not like other banks that give you a high rate and take it away. That rate is there for good!"
https://www.thefreedictionary.com/for+good
for good
Permanently; forever: I'm moving to Europe for good.0
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