Tesco Bank suddenly stops me opening new savings account due to "additional checks required"

Molehusband

I've been a customer of Tesco Bank since 2009 and since then have had a current account (now closed) and about 30 savings accounts, the last one of which I opened on 13 May. As they are now offering a better rate of interest I attempted to open a new savings account today. Nothing in terms of my personal information has changed (name, address, NI number etc etc) and I have never had any indication of anything untoward ever happening to my accounts. Yet for the first time ever I am being told the account is not being opened until they have done "additional checks" and gave me no idea what this meant. I can understand if anything in me details has changed that checks might be required. I called their helpline and the staff told me that from time to time existing customers are subjected to these "additional checks" and I just have to wait patiently and hope they get on with it.

Has anyone else who is a long-standing customer ever been subjected  "additional checks" and can explain why they might be required when nothing in their personal details has changed?

DE_612183

if you have 30 different savings accounts over the years I would think they classify that as "suspicious activity", they are compelled to carry out checks under AML.
Just sit tight - should be ok, or use another provider.

Molehusband

DE_612183 said:

if you have 30 different savings accounts over the years I would think they classify that as "suspicious activity", they are compelled to carry out checks under AML.
Just sit tight - should be ok, or use another provider.

The reason I had so many accounts is that Tesco has repeatedly changed their interest rates and that was the only reason for opening a new one. In all cases I transferred the balance from old account to new, so what's "suspicious" about that? On the contrary, I consider that if I had not upgraded to the new higher paying account I might have been classed as an "idiot" and investigated for suspicious brainless idiocy.

I could equally argue that Tesco's activity in creating new savings accounts so frequently is "suspicious". Why don't they do like many other savings institutions and apply the better rate to existing accounts rather than forcing customers to keep opening new accounts?

wiseonesomeofthetime

I opened one yesterday, as an existing customer, without issue.

I, however, never entered my NI in the application form as that has caused issues in the past.

ColdIron

I'm on my 21st Internet Saver, all but the 18th opened with no problems. Like you no changes of details and it succeeded after 4 or 5 days. Put it down to random spot checks

Daliah

Do you have a protective CIFAS registration?

oldagetraveller1

Sorry, not the same issue, but I recently tried to apply for a fixed rate saver and kept receiving an "application timed out, try again" I did twice. Contacted them and it was because I previously had other accounts. The records for those were removed and the application went through. Now when I try for an internet saver, the same thing happens after being assured that there should be no further problems.

oldagetraveller1

wiseonesomeofthetime said:

I opened one yesterday, as an existing customer, without issue.

I, however, never entered my NI in the application form as that has caused issues in the past.

I'm glad you posted this. I now recall that entering my NI number has caused a prolem in the past. Just tried without entering it and bingo - account opened. I don't know why it's need for a standard savings account anyway?

Sorry, I've gone off topic!

superM

I already have a savings account and applied for clubcard plus account. All accepted immediately online and was showing on the app. 

When I clicked on the account it said to verify photo ID and face ID.  This might they start doing new. I don't know. 

I haven't done it. Since then received this ye card and activated it.  The ID option has now disapeared. 

Daliah

oldagetraveller1 said: I now recall that entering my NI number has caused a prolem in the past. Just tried without entering it and bingo - account opened. I don't know why it's need for a standard savings account anyway?

They need the NI number for the annual reporting of interest to HMRC.

DE_612183

Molehusband said:

DE_612183 said:

if you have 30 different savings accounts over the years I would think they classify that as "suspicious activity", they are compelled to carry out checks under AML.
Just sit tight - should be ok, or use another provider.

The reason I had so many accounts is that Tesco has repeatedly changed their interest rates and that was the only reason for opening a new one. In all cases I transferred the balance from old account to new, so what's "suspicious" about that? On the contrary, I consider that if I had not upgraded to the new higher paying account I might have been classed as an "idiot" and investigated for suspicious brainless idiocy.

I could equally argue that Tesco's activity in creating new savings accounts so frequently is "suspicious". Why don't they do like many other savings institutions and apply the better rate to existing accounts rather than forcing customers to keep opening new accounts?

Hey, I'm not having a go - just pointing out the fact that AML dictates that certain activity raises flags in automated approval systems.

You asked a question a question to explain why the checks applied to you - I responded based on the info you've given.