Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Scarecrow25
    • By Scarecrow25 19th Oct 17, 12:57 PM
    • 7Posts
    • 49Thanks
    Scarecrow25
    Tesco Savings DDs
    • #1
    • 19th Oct 17, 12:57 PM
    Tesco Savings DDs 19th Oct 17 at 12:57 PM
    I can't see that this has been picked up yet, and with my first post I really hate to be the breaker of bad news !
    However, last week I opened a new Tesco Internet saver and just got the paperwork through today. In it, was a booklet, 'Changes to our Tesco Bank Internet Saver & Instant Access T&Cs'
    Summary of key changes - I quote: 'We are making changes to the way in which you can fund your Account. In particular, as of 22 April 2018 you will not be able to fund your Account by way of Direct Debits. On this date all Direct Debits set up on your Account will be cancelled. No further Direct Debits can be set up from this date.'

    I know many use Tesco DDs to meet terms for interest on current accounts, at least we've a few months to come up with a new plan...
Page 1
    • grahamgoo
    • By grahamgoo 19th Oct 17, 1:31 PM
    • 285 Posts
    • 150 Thanks
    grahamgoo
    • #2
    • 19th Oct 17, 1:31 PM
    • #2
    • 19th Oct 17, 1:31 PM
    Thanks for the heads up - it was only a matter of time I supppose, and at least there is a fair bit of notice.
    • greendoor665
    • By greendoor665 19th Oct 17, 1:32 PM
    • 60 Posts
    • 125 Thanks
    greendoor665
    • #3
    • 19th Oct 17, 1:32 PM
    • #3
    • 19th Oct 17, 1:32 PM
    Oh. Well looks like my free 3 a month from Halifax will be stopping then. I think I have got my full years worth of 10 a month M&S vouchers by then though!
    • chockydavid1983
    • By chockydavid1983 19th Oct 17, 1:35 PM
    • 581 Posts
    • 352 Thanks
    chockydavid1983
    • #4
    • 19th Oct 17, 1:35 PM
    • #4
    • 19th Oct 17, 1:35 PM
    Balls. At least we have 6 months to find alternatives...
    • eskbanker
    • By eskbanker 19th Oct 17, 2:13 PM
    • 7,143 Posts
    • 7,579 Thanks
    eskbanker
    • #5
    • 19th Oct 17, 2:13 PM
    • #5
    • 19th Oct 17, 2:13 PM
    Once again there's the suspicion that a subject gets done to death on here, and the sheer volume of discussion and subsequent widespread (ab)use of the facility self-defeatingly contributes to the decision to withdraw it, although I can't pretend not to have participated myself....
    • djpailo
    • By djpailo 19th Oct 17, 2:17 PM
    • 447 Posts
    • 153 Thanks
    djpailo
    • #6
    • 19th Oct 17, 2:17 PM
    • #6
    • 19th Oct 17, 2:17 PM
    On this date all Direct Debits set up on your Account will be cancelled
    This is extremely annoying grrr.
    • glider3560
    • By glider3560 19th Oct 17, 2:22 PM
    • 3,555 Posts
    • 2,252 Thanks
    glider3560
    • #7
    • 19th Oct 17, 2:22 PM
    • #7
    • 19th Oct 17, 2:22 PM
    Has anyone else received this letter? I cannot find any reference to the new amended terms online (they still include mention of the direct debit).

    • karlie88
    • By karlie88 19th Oct 17, 2:44 PM
    • 8,380 Posts
    • 106,138 Thanks
    karlie88
    • #8
    • 19th Oct 17, 2:44 PM
    • #8
    • 19th Oct 17, 2:44 PM
    Has anyone else received this letter? I cannot find any reference to the new amended terms online (they still include mention of the direct debit).
    Originally posted by glider3560
    OP got the letter because they opened the account a few days ago. Presumably, we will all get the letter within the next few weeks.

    It was fun while it lasted. I'm going to cherish my DDs over the next 6 months.
    Official MSE canny forumite and HUKD VIP badge member
    • Mchambers
    • By Mchambers 19th Oct 17, 3:04 PM
    • 904 Posts
    • 272 Thanks
    Mchambers
    • #9
    • 19th Oct 17, 3:04 PM
    • #9
    • 19th Oct 17, 3:04 PM
    Oh well....I will look for alternatives. It was good while it lasted.

    I may try and complain to Tesco to see if I can get them to change.
    • EachPenny
    • By EachPenny 19th Oct 17, 3:24 PM
    • 4,959 Posts
    • 13,216 Thanks
    EachPenny
    Once again there's the suspicion that a subject gets done to death on here, and the sheer volume of discussion and subsequent widespread (ab)use of the facility self-defeatingly contributes to the decision to withdraw it, although I can't pretend not to have participated myself....
    Originally posted by eskbanker
    It was going to happen sooner or later I guess, some people cannot help but take the proverbial.

    I wonder if Santander will be one of the losers over this. I'm close to Lite-ing my 123 account, but would consider going further and foregoing the Lite cashback entirely to move DD's to maintain the best interest bearing current accounts.

    Some interesting mathematics to do in the coming months.
    "In the future, everyone will be rich for 15 minutes"
    • Ken68
    • By Ken68 19th Oct 17, 3:50 PM
    • 6,392 Posts
    • 4,084 Thanks
    Ken68
    Thanks Scarecrow...that explains why I was declined an additional Internet Saver a/c. last week. Maybe more 1 charity donations for the future.
    • eskbanker
    • By eskbanker 19th Oct 17, 4:12 PM
    • 7,143 Posts
    • 7,579 Thanks
    eskbanker
    Thanks Scarecrow...that explains why I was declined an additional Internet Saver a/c. last week.
    Originally posted by Ken68
    How/why do you believe a future change in permitted funding methods in six months' time affects an account application now?

    However, it's sometimes mentioned that there's a limit (unpublicised I think) of six Tesco savings accounts per person so could you perhaps have fallen foul of that?
    • philng
    • By philng 19th Oct 17, 4:40 PM
    • 605 Posts
    • 78 Thanks
    philng
    Disappointing to hear but a number of accounts I am funding such as BOS are now only paying 2% interest & there is a possibility ordinary Instant Access acounts online will be paying close to that by April next year.
    Also although I don't fund Santander with TESCO DDs I would close the 123 account when my monthly saver finishes as the 1.5% may also be matched elsewhere by April with Santander unlikely to increase the 123 rate in line with Base Rate increases.
    • Ken68
    • By Ken68 19th Oct 17, 5:05 PM
    • 6,392 Posts
    • 4,084 Thanks
    Ken68
    How/why do you believe a future change in permitted funding methods in six months' time affects an account application now?

    However, it's sometimes mentioned that there's a limit (unpublicised I think) of six Tesco savings accounts per person so could you perhaps have fallen foul of that?
    Originally posted by eskbanker

    Sorry got that wrong, wasn't declined, was asked to phone.
    • adindas
    • By adindas 19th Oct 17, 5:07 PM
    • 3,529 Posts
    • 2,192 Thanks
    adindas
    Thanks to the OP for bringing this news.

    But while I appreciate this news, I will wait and see until at least another person non first timer confirm this before I start considering another alternative.

    But it is expected that it is going to happen at some times in the future.
    Last edited by adindas; 19-10-2017 at 5:10 PM.
    • glider3560
    • By glider3560 19th Oct 17, 5:08 PM
    • 3,555 Posts
    • 2,252 Thanks
    glider3560
    I've been doing some calculations:

    3x Bank of Scotland accounts at 5,000 each paying 2.00%
    1x Lloyds account at 5,000 paying 2.00%

    Assuming highest instant access at 1.25%, difference in interest is 0.75%, therefore 150 on all four accounts.

    If the only alternative is to create 1 charity payments, that will cost 96 per year, reducing the extra interest down to just 54. At that point, I'd say the effort is hardly worth it and will probably just bung the money directly into the 1.25% account or cycle through regular savers.

    It was fun whilst it lasted.

    • Mee
    • By Mee 19th Oct 17, 5:09 PM
    • 1,090 Posts
    • 1,039 Thanks
    Mee
    Will wait to see what is in my new TIS paperwork when it arrives.

    Fortunately my Santander is no longer dependent on TIS DDs, but most of my other high interest c/a are... aghhhhhhhhhhhhhh
    Last edited by Mee; 19-10-2017 at 5:35 PM.
    • EachPenny
    • By EachPenny 19th Oct 17, 5:15 PM
    • 4,959 Posts
    • 13,216 Thanks
    EachPenny
    Also although I don't fund Santander with TESCO DDs I would close the 123 account when my monthly saver finishes as the 1.5% may also be matched elsewhere by April with Santander unlikely to increase the 123 rate in line with Base Rate increases.
    Originally posted by philng
    Funding the 123 account with Tesco DD's would normally be unnecessary as most people would have enough cashback earning DD's to meet the requirements of a typical household's maximum number of 123 accounts (3).

    The 123's effective rate, taking into account the monthly fee (but not cashback) is around 1.2% which can easily be matched elsewhere. So it is only the access to the preferential RS account and the DD cashback that makes the 123 account attractive.

    With an end to 'free' Tesco DD's the value of DD's going through the 123 account becomes more significant - any which earn less than 1 cashback would offer greater value as a DD required to earn interest on another account (because setting up anything else for that purpose will cost at least 1). So that means Water or Council Tax bills of over 100 per month, Energy bills over 50 per month, or Telecoms bills over 33 per month.

    Leaving only the two largest cashback earning bills DD'd from a 123 Lite account may be the best solution for many.
    "In the future, everyone will be rich for 15 minutes"
    • Mee
    • By Mee 19th Oct 17, 5:25 PM
    • 1,090 Posts
    • 1,039 Thanks
    Mee
    Some helpful points re: Santander and DDs and comparable interest rate...

    My Santander 123 DDs don't generate enough cashback to offset the monthly fee (due to may low water and council bills), though the interest more than does so. I've found it invalueable for the amount I can stash away (up up 20K) whilst retaining the easy access and payment options (DDs, SOs and FPs etc) which help me operate other high interest c/as.
    Last edited by Mee; 19-10-2017 at 5:43 PM.
    • EachPenny
    • By EachPenny 19th Oct 17, 5:54 PM
    • 4,959 Posts
    • 13,216 Thanks
    EachPenny
    My Santander 123 DDs don't generate enough cashback to offset the monthly fee (due to may low water and council bills)...
    Originally posted by Mee
    Same here. My water bill currently generates 9p/mth cashback, so that will become a BoS DD instead.

    I'm also going to take another look at my energy supplies as my current supplier does a combined bill on a quarterly basis. Split supplies billed monthly could be worth 6 per quarter in DD 'savings' and I know I spend less than 100 per month on energy on average. Hopefully I'll get better energy prices too
    "In the future, everyone will be rich for 15 minutes"
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,860Posts Today

7,758Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin