Transferring a Tesco Cash ISA to Tesco Cash ISA

Wifey101

Hi all,

I have a Tesco Cash ISA which I opened ealier this tax year. Then the interest rate dropped to 1.1%. I can see that Tesco are now advertising their Cash ISA with a 1.25% interest rate. Do you think it is possible to transfer my Tesco Cash ISA into a new Tesco Cash ISA?

I would be transferring all the money at once so I'm inline with ISA rules.
Tesco's website says they accept transfers "between different Tesco Bank Cash ISA accounts".

It just seems too good to be true that, by simply filling in the form again, I can get a better interest rate from the same bank.

Could anyone advise?
Thanks.

masonic

I don't think it seems too good to be true. Tesco have permitted people to open new issues of their savings accounts and it would be rather unreasonable and self-defeating of them to require you to transfer your ISA elsewhere then back to Tesco in order to get the new account.

Alexland

Bumping existing customers onto lower rates while punting for new customers at higher rates isn't too good to be true. Now you have noticed... them remedying the situation is the least they can do to keep you onboard.

Wifey101

Thank you both for your replies.

It's the speed at which you become an 'existing' customer and the interest rate decreases that's surprised me most.
I will have to get around to applying for a new cash isa and transferring my old Tesco Cash ISA to a new Tesco Cash ISA.
Thanks again.