Tesco internet saver

bjbyorkshire
bjbyorkshire Posts: 521 Forumite
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in Budgeting & bank accounts
My internet saver at 1.3% is coming to the end of its bonus period on 18 November.

I have recently opened a Tesco 2 year fixed rate saver with some of the money that has been in this account and am not sure when to move my internet instant access to another bank entirely or when to open the latest Tesco internet account and still receive the annual bonus payout.

Will I receive the interest on 18 November which is the anniversary of opening my account? Could I move all the money to the latest edition of this account now or will this mean I don’t receive the full bonus.

I have looked on Tesco terms and conditions but would welcome any advice from you money savers.

Many thanks

Comments

  • RG2015
    RG2015 Posts: 5,903 Forumite
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    Interest is calculated daily on the daily closing balance. The standard interest is paid on 31st March and the bonus interest is paid on the anniversary of opening the account. The actual balance at either of these dates does not affect the accrued interest to be paid on these dates.

    You can also close the account at any time and all of the interest will be paid upon closure.
  • bjbyorkshire
    bjbyorkshire Posts: 521 Forumite
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    Thanks, so as I understand it... I can open another new Internet saver on the 18 November at the slightly higher rate than the one due to mature. Close the original one as soon as the new one is opened and then I should receive the interest and bonus interest immediately?

    I have several fixed rate savers from other banks due to mature in January and am already wondering where best to move them to. I don’t really want to fix them beyond 2 years for obvious reasons, interest rates may rise?? Cows might also fly, lol.

    Thanks for clarifying this for me.
  • RG2015
    RG2015 Posts: 5,903 Forumite
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    bjbyorkshire wrote: »
    Thanks, so as I understand it... I can open another new Internet saver on the 18 November at the slightly higher rate than the one due to mature. Close the original one as soon as the new one is opened and then I should receive the interest and bonus interest immediately?

    I have several fixed rate savers from other banks due to mature in January and am already wondering where best to move them to. I don’t really want to fix them beyond 2 years for obvious reasons, interest rates may rise?? Cows might also fly, lol.

    Thanks for clarifying this for me.
    You can actually hold six Tesco Bank internet savers at the same time so you could open the current 1.42% one now. Tesco Bank frequently change their rates so the 1.42% may not be available on 18 November.

    I have emptied my 1.35% one and transferred the balance to the new Marcus account currently offering 1.50% (1.35% basic plus 0.15% 1 year bonus). This pays interest monthly so is easier to manage than Tesco Bank.
  • bjbyorkshire
    bjbyorkshire Posts: 521 Forumite
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    Thanks, I’m really fed up with all the money swapping from here to there now. It was quite fun a couple of years ago but now that the interest rates are so much less I’m trying to keep my bank accounts to a minimum number. The slightly better rate from Marcus isn’t enough to tempt me to open yet another account with yet another bank. Only if one pays significantly more would I be tempted.

    RG2015, if I open the new internet saver tomorrow, get the new sort code and account number then move all the money from my existing account to this new account, will The interest go into the old account immediately or will I have to call and ask Tesco to close the account and pay the interest to the new account? How does this occur please?
  • RG2015
    RG2015 Posts: 5,903 Forumite
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    bjbyorkshire wrote: »
    RG2015, if I open the new internet saver tomorrow, get the new sort code and account number then move all the money from my existing account to this new account, will The interest go into the old account immediately or will I have to call and ask Tesco to close the account and pay the interest to the new account? How does this occur please?
    You will need to call Tesco Bank and close the old account and specify where you want the closing interest to be credited.

    Mine is still open with a balance of £1 But I am happy to wait until the one year date later this month and 31st March for my two tranches of interest. I don't like the fact that closing the account will remove my visibility of the year's transactions on the account
  • bjbyorkshire
    bjbyorkshire Posts: 521 Forumite
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    Thanks again, exactly what I wanted to know.
  • System
    System Posts: 178,093 Community Admin
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    bjbyorkshire wrote: »
    Thanks, I’m really fed up with all the money swapping from here to there now. It was quite fun a couple of years ago but now that the interest rates are so much less I’m trying to keep my bank accounts to a minimum number. The slightly better rate from Marcus isn’t enough to tempt me to open yet another account with yet another bank. Only if one pays significantly more would I be tempted.

    RG2015, if I open the new internet saver tomorrow, get the new sort code and account number then move all the money from my existing account to this new account, will The interest go into the old account immediately or will I have to call and ask Tesco to close the account and pay the interest to the new account? How does this occur please?

    You contradict your first paragraph with your second one.

    I found the Marcus opening process painless and prefer monthly interest too.
  • RG2015
    RG2015 Posts: 5,903 Forumite
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    Heng_Leng wrote: »
    You contradict your first paragraph with your second one.

    I found the Marcus opening process painless and prefer monthly interest too.
    I think it was implied that bjbyorkshire was fed up switching savings between banks. The switch they are suggesting is to another account with the same bank.

    I do however agree that the Marcus opening process was simplicity itself. The rate is also much better and the interest is paid monthly rather that the curious two annual payment dates with Tesco Bank.

    My only concern is that I am now part of the evil Goldman Sachs empire as advised by Thruglemir on one of the Marcus threads.
  • bjbyorkshire
    bjbyorkshire Posts: 521 Forumite
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    Yes, that’s exactly what I meant. No more banks, just more accounts with the banks I have. Marcus isn’t a much better rate for an instant saver than Tesco is it?
  • adindas
    adindas Posts: 6,813 Forumite
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    Hi Guys
    I just want to make people aware. The Tesco Internet saver is now paying 1.45%.
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