When safe to switch away from Tesco

beefturnmail

Hi given the rate reduction of the Tesco current accounts which is coming in the 14 June, I'm trying to get my head round the earliest point I can switch away without risking losing a months interest.

Should a switch dated 15 June be ok for example, or is there any chance of falling foul of the t & c for the final months interest in terms of when dds need to come out.

Thanks

Zero_Sum

Just do it after youve been paid your interest.

Ive got 2 accounts & keeping 1 switching t'other.
The one im switching my interest is paid on 15th. So after 15th money is going into marcus then i'll be applying for the m&s switch

colsten

You will only be losing a month's interest if you empty or close your account, or cease meeting the qualification criteria for interest, a month before Tesco stop paying interest (which they have not announced they will do - they're just reducing the AER).

Your interest will be calculated at the end of each day, based on the balance in the account and the AER applicable on that day. Whilst you are qualifying for the 3% AER, you could lose about 23p a day if you have £3,000K or more in the account. Same if you stop qualifying for the 3% AER though you might still qualify for the 1%.

beefturnmail

thanks - not sure if what if what I was getting at has been understood (probably because I wasn't being clear...).

My statement month runs to the 4th each month, interest paid on the 4th and 3 dds coming out around the 28th/29th.

If I arrange a switch for the 15th June, will I lose the 3% interest for the period 4th - 15th June (because no dds for that period), therefore (to earn 3% for the max period) I think I need to arrange the switch for 5th July (the day after 'June's' interest is paid on 4th July)?

Sea_Shell

I switched both recently, and the balance transferred included the extra part month interest on closure. It's calculated daily.

Zero_Sum

beefturnmail wrote: »

thanks - not sure if what if what I was getting at has been understood (probably because I wasn't being clear...).

My statement month runs to the 4th each month, interest paid on the 4th and 3 dds coming out around the 28th/29th.

If I arrange a switch for the 15th June, will I lose the 3% interest for the period 4th - 15th June (because no dds for that period), therefore (to earn 3% for the max period) I think I need to arrange the switch for 5th July (the day after 'June's' interest is paid on 4th July)?

You'll still get 1% for 16th jun -4th jul. But after 15th just leave enough in to cover DD's & move rest of cash out for best rate, then switch 5th july

colsten

beefturnmail wrote: »

If I arrange a switch for the 15th June, will I lose the 3% interest for the period 4th - 15th June (because no dds for that period),

Seems you answered your own question then. If the DDs are the problem, change their dates, or do as Zero Sum suggests.