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Tesco Current Account will pay no interest from 22/9

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Tesco Current Account will pay no interest from 22/9

edited 1 July at 11:52AM in Budgeting & Bank Accounts
53 replies 5.9K views
j.pj.p Forumite
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edited 1 July at 11:52AM in Budgeting & Bank Accounts
Like Marcus (from Harry and Paul) would have said, "I saw you coming". But now that we are customers, what are we to do? (somehow I feel that the joke of a thick customer coming to buy an ordinary product and returning for more because (s)he got hooked is on us)
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Replies

  • ceredigionceredigion Forumite
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    How do you know ? 
  • KxMxKxMx Forumite
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    An email went out today, I got one too. 
    I'll keep it for the double clubcard points when shopping at Tesco, but may keep less money in. 
  • diamondchapdiamondchap Forumite
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    The key bit of the email states:
    "During March 2020 the Bank of England decreased base rates from 0.75% to their lowest ever level of 0.10%.
    Given this significant change to the base rate we’ve reviewed our current account interest rate and made the decision to reduce this to 0%. This means from 22 September 2020 you won’t earn interest.  You’ll still earn your current rate of 1% AER on eligible balances up to £3,000 until then."

  • j.pj.p Forumite
    27 posts
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    I think they've simply made the decision to stop selling new accounts, and since the 3% or 1% headline rate was just a means to that (a bribe some would say), they're scrapping that, and throwing all current customers under the bus.
    I think they're going to scale down operations and keep serving their customer base with fewer and fewer resources (they already direct customers to an online forum for support where apart from a handful of staff customers help themselves), and I think they'll reach a point when they let customers just walk away... till they sell the business to another provider.
    Much touted Intelligent Finance went that way - though it's not sold yet AFAIK - but just look what it is now.  It is a carcass.
    I don't 'know' any of this (and it wasn't in the email), I just suspect it.
  • edited 1 July at 12:47PM
    wmb194wmb194 Forumite
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    edited 1 July at 12:47PM
    Ever since Tesco Bank sold its mortgage book and stopped offering new ones it's felt like it's been winding down: it certainly stopped bidding for instant access deposits by offering table topping rates in the way that it used to and it hasn't been offering new current accounts for while.
  • edited 1 July at 1:13PM
    moleratmolerat Forumite
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    edited 1 July at 1:13PM
    KxMx said:
    An email went out today, I got one too. 
    I'll keep it for the double clubcard points when shopping at Tesco, but may keep less money in. 
    Not heard anything yet.
    Only keep it at £100 which is more than enough for a weekly shop and a tank of petrol at 2% points and transfer money in for buying Premium Bonds and paying into the HL SIPP for the 0.125% worth of points.  If they cut the points that will be the end.

  • Shakin_SteveShakin_Steve Forumite
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    I still have £6000 across two current accounts, £5 a month is better than nowt. Can't really see where it's worth moving it to after September, there's nothing worthwhile about at the moment. 
    I'm just grateful I've still got some money in the bank(s), lots of people haven't after recent events.
    I came into this world with nothing and I've got most of it left.
  • crumpet_mancrumpet_man Forumite
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    NS&I Direct Saver pays 1% so that's an easy place to put your funds, no current account related hoops (monthly funding, DD etc)
  • KxMxKxMx Forumite
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    The legacy Tesco accounts don't have any conditions attached.
    Still a great tip. 
  • edited 1 July at 5:45PM
    quirkydeptlessquirkydeptless Forumite
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    edited 1 July at 5:45PM
    Shame, I was using it as a Regular Saver feeder. Will need to find a new home.
    Wondering how long the Lloyds Club rate will last now  :(
    This is not investment advice.
    Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."
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