Tesco Internet Saver Rates Reduction

ColdIron

I posted this on another thread but it deserves one of its own

• Tesco have stopped offering any bonus rate to new accounts from 7th August
• Tesco are cutting the standard rate from 0.55% to 0.35% for all accounts from 24th October

They can change the standard (variable) rate at any time they like. The last time they did this was in response to the BoE reducing rates by 0.25%. They were a bit cheeky by reducing theirs by 0.35% (0.75% to 0.40%) and then when the BoE raised theirs again by 0.25% they only raised theirs by 0.15% (0.40% to the current 0.55%)

So bad news all round. No more bonus rate for new accounts and a reduction of 0.20% for everyone else. The end of the Tesco Internet Saver, as we know it, that we have all loved for years

soulsaver

Good news for Marcus... assuming they want another stampede..

tempus_fugit

ColdIron wrote: »

I posted this on another thread but it deserves one of its own

• Tesco have stopped offering any bonus rate to new accounts from 7th August
• Tesco are cutting the standard rate from 0.55% to 0.35% for all accounts from 24th October

They can change the standard (variable) rate at any time they like. The last time they did this was in response to the BoE reducing rates by 0.25%. They were a bit cheeky by reducing theirs by 0.35% (0.75% to 0.40%) and then when the BoE raised theirs again by 0.25% they only raised theirs by 0.15% (0.40% to the current 0.55%)

So bad news all round. No more bonus rate for new accounts and a reduction of 0.20% for everyone else. The end of the Tesco Internet Saver, as we know it, that we have all loved for years

Bit presumptuous there.

colsten

Why would anyone still have any money in Tesco internet savers? They haven't been offering the top rates since last August (when Cynergy had a 1.56% account), and the removal of their DD functionality removed the last remaining reason for using these Tesco accounts. We even had an instant access cash ISA paying 1.5% in March/April this year, and there are currently 2 instant access savers paying 1.5%.

badger09

colsten wrote: »

Why would anyone still have any money in Tesco internet savers? They haven't been offering the top rates since last August (when Cynergy had a 1.56% account), and the removal of their DD functionality removed the last remaining reason for using these Tesco accounts. We even had an instant access cash ISA paying 1.5% in March/April this year, and there are currently 2 instant access savers paying 1.5%.

In my case, apathy/lethargy/ennui:o

For me, the difference between the Tesco account & say Marcus, is at most £12 over the year. I no longer want to play the game for sums like that.

I also like the fact that I can instantly move money from my Tesco savings account to any of my other current accounts, thanks to the previous DD functionality.

However, I will now apply for a Marcus account, thus maintaining my credentials as a MSE:)

badger09

badger09 wrote: »

In my case, apathy/lethargy/ennui:o

For me, the difference between the Tesco account & say Marcus, is at most £12 over the year. I no longer want to play the game for sums like that.

I also like the fact that I can instantly move money from my Tesco savings account to any of my other current accounts, thanks to the previous DD functionality.

However, I will now apply for a Marcus account, thus maintaining my credentials as a MSE:)

Marcus account duly opened. Really simple process:) Just waiting for initial funding to arrive.

eskbanker

badger09 wrote: »

Marcus account duly opened. Really simple process:) Just waiting for initial funding to arrive.

....and also just waiting to be roundly castigated by those on here for whom Goldman Sachs is The Dark Side!

soulsaver

colsten wrote: »

Why would anyone still have any money in Tesco internet savers? They haven't been offering the top rates since last August (when Cynergy had a 1.56% account), and the removal of their DD functionality removed the last remaining reason for using these Tesco accounts. We even had an instant access cash ISA paying 1.5% in March/April this year, and there are currently 2 instant access savers paying 1.5%.

Well... maybe they'd got enough in Cynergy and Marcus AND a wall of cash from Lloyds, HBoS & Halifax soon looking for a home at better than 1.2... .

If goes on like this Santander may be de-lited ..:)

ColdIron

badger09 wrote: »

Marcus account duly opened. Really simple process Just waiting for initial funding to arrive.

It really is the easiest account to open and operate, just bear in mind a delay when withdrawing on weekends (unlike Tesco )

eskbanker wrote: »

....and also just waiting to be roundly castigated by those on here for whom Goldman Sachs is The Dark Side!

Welcome to the world of the Vampire Squid

caveman38

Am I reading this right?
The Internet Saver that I have that pays 1.45% (including bonus) that lasts till October. Is currently only 0.55% and by my renewal will be 0.35%.
Or am I missing some bonus addition?

badger09

caveman38 wrote: »

Am I reading this right?
The Internet Saver that I have that pays 1.45% (including bonus) that lasts till October. Is currently only 0.55% and by my renewal will be 0.35%.
Or am I missing some bonus addition?

No you're not.

Suggest you read ColdIron's opening post again;)