Tesco Fixed Rate Savings - teething queries.

thewinelake66

Suggested to my daughter that she get one of these, as recommended in the main MSE. Something kind of odd struck me, which is that you're only allowed to make one deposit.
In some ways that makes sense - makes it easy to work out the interest, but what if you want to add to your savings? Can you open another one?
There was an interesting problem she faced which is that the source of her funds (Nationwide) only allow £25,000 transfers at a time. This, coupled with the above restriction, means that the only way she could fund the account was with CHAPS or cheque. The first one didn't look good, as her account could not be name-checked (perhaps that takes a day or two to percolate through the banking system?) and so she asked for a cheque to be made out in her name, which will be posted to Tesco. What a faff! And what happens if the cheque goes missing?
BTW, the staff at Nationwide were really surprised that their product wasn't the best in town!

ColdIron

You could probably open an Internet Saver and transfer from there

https://www.tescobank.com/savings/flexible/internet-saver/

thewinelake66

DD has been a bit silly and sent the cheque second class.... And it hasn't yet arrived!

thewinelake66

ColdIron said:

You could probably open an Internet Saver and transfer from there

https://www.tescobank.com/savings/flexible/internet-saver/

Same issue would be down to payee verification. Apparently the bank COULD have transferred in one go, but were reluctant to, because of lack of payee verification.

Albermarle

Normally these types of accounts allow multiple deposits within a fixed window ( 14 to 30 days)
Maybe you should try another provider, there are quite a few offering a better rate than the Tesco 5.85%
Best 1 Year Fixed Rate Bonds | Rates up to 6.05% (moneyfactscompare.co.uk)

refluxer

thewinelake66 said:

DD has been a bit silly and sent the cheque second class.... And it hasn't yet arrived!

Luckily, the funding window is 30 days for a Tesco Bank Fixed Rate Saver - some funding windows can be as small as 7 days in which case funding one by cheque would risk missing the deadline, considering the current state of the postal service.

It looks like funding this account by cheque is allowed, but it'll need to be from her linked bank account. I would imagine that will have been set up during the application process ? Worth checking to avoid the risk of the cheque being rejected. 

 

thewinelake66

refluxer said:

thewinelake66 said:

DD has been a bit silly and sent the cheque second class.... And it hasn't yet arrived!

Luckily, the funding window is 30 days for a Tesco Bank Fixed Rate Saver - some funding windows can be as small as 7 days in which case funding one by cheque would risk missing the deadline, considering the current state of the postal service.

 it'll need to be from her linked bank account.
 

Well, this is not the case - the cheque is from a building society savings account, but the linked account is her regular current account. Having said that, as this is a building society cheque, they won't know what account it's from.

thewinelake66

Albermarle said:

Normally these types of accounts allow multiple deposits within a fixed window ( 14 to 30 days)
Maybe you should try another provider, there are quite a few offering a better rate than the Tesco 5.85%
Best 1 Year Fixed Rate Bonds | Rates up to 6.05% (moneyfactscompare.co.uk)

I thought it better to go with a well known brand, as my wife would find that easier to accept!

refluxer

thewinelake66 said:

refluxer said:

thewinelake66 said:

DD has been a bit silly and sent the cheque second class.... And it hasn't yet arrived!

Luckily, the funding window is 30 days for a Tesco Bank Fixed Rate Saver - some funding windows can be as small as 7 days in which case funding one by cheque would risk missing the deadline, considering the current state of the postal service.

 it'll need to be from her linked bank account.
 

Well, this is not the case - the cheque is from a building society savings account, but the linked account is her regular current account. Having said that, as this is a building society cheque, they won't know what account it's from.

Hopefully that won't be a problem - I was just presuming a worst-case scenario ! 

intalex

A question relating to this account, as I didn't see a relevant option in the account opening steps - if you choose the monthly interest option, where is the interest paid? Usually I get the option of within the fixed rate or to the nominated account, but for this product I didn't see any options, so I assume it's always locked, in which case to which option? TIA

wmb194

intalex said:

A question relating to this account, as I didn't see a relevant option in the account opening steps - if you choose the monthly interest option, where is the interest paid? Usually I get the option of within the fixed rate or to the nominated account, but for this product I didn't see any options, so I assume it's always locked, in which case to which option? TIA

I opened a Tesco fixed rate bond late last year the interest is being paid away to my nominated account every month. There should be an option somewhere.