Tesco Interest rate

lpgm

£1 spent in Tesco still gives me 4.8 Avios.

hoc

Voyager2002 wrote: »

the debit card can be used to pay credit card bills, or even to put money into a share-dealing account, and that still earns Clubcard points.

Zero_Sum wrote: »

I get points for putting money into my S&S ISA, and IFISA so ill be keeping one of my accounts for this reason also.

Voyager2002 wrote: »

I have used my Tesco debit card to pay off my Amex (preferred rewards gold, I think). I may have used it to pay off Barclaycard as well: not sure.

Are you sure?



I had looked into the terms for this and checked again now and it is not supposed to work. "Clubcard points can’t be collected if you use your debit card to pay for bills at banks or other financial institutions."


from: https://www.tescobank.com/current-accounts/rewards/#terms-1


This is outside of standing order and direct debits which do not collect points in any case. What share dealing platforms are you using?


It doesn't make sense to be able to collect points this way because people would then repeat the cycle, funding and withdrawing over and over. Obviously not with one time like ISA but there are instant access savings accounts that can be funded by debit card which could be done ad infinitum. It's for the same reason you can't collect points from cash withdrawal as you could then just pay it back in.

Thrugelmir

stevec59 wrote: »

I phoned them today as I need Interest statements for Tax purposes and I asked them if the drop to 1% was a temporary thing or if it was likely to go up, the person I spoke to didn't know.
1% isn't bad, but there are better rates out there.
I guess I don't want to close the account because I applied for it and got it before you needed DD's, so I'm kinda thinking do I keep it for a for a while? If I left it a year ( I certainly wouldn't wait that long), then I guess I'd loose @ £15 PA per account

Withdrawl from the mortgage market will no doubt result in a declining requirement for retail cash deposits.

MDMD

hoc wrote: »

Are you sure?



I had looked into the terms for this and checked again now and it is not supposed to work. "Clubcard points can’t be collected if you use your debit card to pay for bills at banks or other financial institutions."


from: https://www.tescobank.com/current-accounts/rewards/#terms-1


This is outside of standing order and direct debits which do not collect points in any case. What share dealing platforms are you using?


It doesn't make sense to be able to collect points this way because people would then repeat the cycle, funding and withdrawing over and over. Obviously not with one time like ISA but there are instant access savings accounts that can be funded by debit card which could be done ad infinitum. It's for the same reason you can't collect points from cash withdrawal as you could then just pay it back in.

It definitely works for Hargreaves Lansdown- I was surprised to get £10 of Tesco vouchers even though I hadn’t been there for months. It turned out it was my Tesco debit card I used that generated the points.

It didn’t work on fidelity or on NS&I, so it must be either to do with the way the transaction is presented to Tesco.

Zero_Sum

hoc wrote: »

Are you sure?



I had looked into the terms for this and checked again now and it is not supposed to work. "Clubcard points can’t be collected if you use your debit card to pay for bills at banks or other financial institutions."


from: https://www.tescobank.com/current-accounts/rewards/#terms-1


This is outside of standing order and direct debits which do not collect points in any case. What share dealing platforms are you using?


It doesn't make sense to be able to collect points this way because people would then repeat the cycle, funding and withdrawing over and over. Obviously not with one time like ISA but there are instant access savings accounts that can be funded by debit card which could be done ad infinitum. It's for the same reason you can't collect points from cash withdrawal as you could then just pay it back in.

Its not supposed to, but there are a few that do work. Its just a matter of trying out different things & check what works. Ive tried a number of P2P accounts, and so far theres only Funding Circle that doesnt work.

Obviously if you do it too much & generate high volume of clubcard points then you run the risk of being found out. I try to keep the points from cash recycling to no more than £10 a month using deposits of 'smaller' amounts

hoc

Thanks for confirming. That's quite the loophole then.


A £100 transfer/payment earns 12.5 points worth 12.5p. With boost it can be worth up to 4 times but let's assume worse case of face value. 40 payments would earn £5 worth matching the highest rate available of 5%. This would require fewer than one payment a week which is easily possible even with the slower "instant" access savings that take a few days to show up and come back. Done aggressively with enough discipline and the right account the cycle could easily be repeated every 3-4 days netting 10-15% return. But yes even a modest sum like 20k would be generating around 2M total of transactions for the year which would get the banks attention if not Tesco. I still do find it strange Tesco would not have caught on, even if their customer base aren't the type paying huge lumpsums into ISA/SIPP/savings/trading accounts there aren't that many such providers so when they do their market analysis on card processors and transaction types at the macro level it should be apparent.

IanManc

hoc wrote: »

A £100 transfer/payment earns 12.5 points worth 12.5p. With boost it can be worth up to 4 times but let's assume worse case of face value. 40 payments would earn £5 worth matching the highest rate available of 5%.

No, a £100 transfer doesn't earn 12.5 points.

A £100 transfer would earn 12 points worth 12p. 40 of those transfers would earn £4.80 worth of points.

There are no half-points or fractions of points. You get 1 point worth 1p for each £8 spent on the debit card outside Tesco.

So you get 12 points for spending £96, £97, £98, £99, £100, £101, £102, or £103, then 13 points for spending £104, and so on.

OceanSound

@op: it may be peanuts to you and me, but just think how many customers have Tesco current accounts. customer base X (multiply) peanuts = Kerching (hefty sum for Tesco bank)

Apologies for not including the op's quote. Every time i tap 'quote' on smartphone link mse site thinks i am thanking the poster.

OceanSound

to qualify for 1% interest, i take it we still need to do £750 pay in and 3x dd's. (Even if they are the same dd done weekly)

eskbanker

OceanSound wrote: »

to qualify for 1% interest, i take it we still need to do £750 pay in and 3x dd's. (Even if they are the same dd done weekly)

Surely that's a rhetorical question - why would anyone jump through artificial hoops to earn 1% interest when 1.5% is readily available in an easy access savings account with no strings attached (and better rates in certain other current accounts and regular savers)? Or 1.36% without even straying from Tesco....