Tesco Bank reduce interest rate on savings account

RG2015
RG2015 Posts: 5,903 Forumite
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edited 17 April 2018 at 1:19PM in Savings & investments
@niktheguro has posted on the MSE Lloyds BOS thread about the Tesco Bank rate drop. I have started a new thread to highlight this in case some people miss it.
niktheguru wrote: »
Looks like tesco has acted.....their internet saver has just dropped to 1.18%!
RG2015 wrote: »
Hi niktheguru,

Many thanks for alerting us to this news.

I have just checked and I see that Tesco Bank has reduced the 12 month bonus but not the underlying rate. Hence it is 0.55% plus a bonus of 0.63%

Existing account holders will not be affected and I am still hoping that the BOE will increase the base rate soon and Tesco Bank will likewise increase their underling rate.

The link below shows the historical rates for the bonus. You will need to scroll down to the internet saver and then click on introductory bonus.

https://www.tescobank.com/savings/previous-interest-rates/
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Comments

  • beefturnmail
    beefturnmail Posts: 906 Forumite
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    So first Lloyds and BoS drop the rate on their 'current' accounts (savings account to a lot of people), and now Tesco reduce rates too.

    I reckon banks are pre-empting a BoE rate rise next month, so that when it comes in then can raise their rates in line with this and claim that they are being fair by passing on the BoE rate rise in full.
  • Speculator
    Speculator Posts: 2,225 Forumite
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    beefturnmail wrote: »
    So first Lloyds and BoS drop the rate on their 'current' accounts (savings account to a lot of people), and now Tesco reduce rates too.

    I reckon banks are pre-empting a BoE rate rise next month, so that when it comes in then can raise their rates in line with this and claim that they are being fair by passing on the BoE rate rise in full.

    Similar to what the Coventry BS did. Before the previous BoE rate rise, they lowered their rates then increased them shortly after the BoE rate rise. Then last month, Coventry lowered rates again and I expect them to raise them again in June after the expected BoE rate rise in May.
  • Herbalus
    Herbalus Posts: 2,634 Forumite
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    RG2015 wrote: »
    @nictheguro has posted on the MSE Lloyds BOS thread about the Tesco Bank rate drop. I have started a new thread to highlight this in case some people miss it.

    Is it worth editing the title to make clear its about savings accounts specifically? I think most on here prioritise the current account over the savings accounts (many have claimed the savings accounts will be closed now DD functionality is going).

    The thread title made me think initially of the current account given recent BOS news, and that’s guaranteed until April 2019 as you will be aware no doubt.
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    Herbalus wrote: »
    The thread title made me think initially of the current account given recent BOS news, and that’s guaranteed until April 2019 as you will be aware no doubt.

    But presumably only on accounts already opened - they could reduce the interest rate available for accounts opened after a certain date? Which is what I thought was happening when I saw the thread title.
    "In the future, everyone will be rich for 15 minutes"
  • Herbalus
    Herbalus Posts: 2,634 Forumite
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    EachPenny wrote: »
    But presumably only on accounts already opened - they could reduce the interest rate available for accounts opened after a certain date? Which is what I thought was happening when I saw the thread title.

    I suppose that is also possible. I think that Tesco made a big push at the time to say the rate is guaranteed until 2019 for all new accounts, as it was a push for new account holders. On that basis it seems unlikely they would cut the rate for new current accounts, but stranger things have happened.
  • RG2015
    RG2015 Posts: 5,903 Forumite
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    Herbalus wrote: »
    Is it worth editing the title to make clear its about savings accounts specifically? I think most on here prioritise the current account over the savings accounts (many have claimed the savings accounts will be closed now DD functionality is going).

    The thread title made me think initially of the current account given recent BOS news, and that!!!8217;s guaranteed until April 2019 as you will be aware no doubt.
    Thank you for picking me up on this and please accept my apologies for inadvertently misleading you.

    I have now edited the title which I hope is now clear.
  • RG2015
    RG2015 Posts: 5,903 Forumite
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    Herbalus wrote: »
    Is it worth editing the title to make clear its about savings accounts specifically? I think most on here prioritise the current account over the savings accounts (many have claimed the savings accounts will be closed now DD functionality is going).

    The thread title made me think initially of the current account given recent BOS news, and that’s guaranteed until April 2019 as you will be aware no doubt.
    I cannot see Tesco Bank closing their savings account. All banks maintain savings accounts even those that have derisory rates such as FD and NatWest.
  • eskbanker
    eskbanker Posts: 30,995 Forumite
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    RG2015 wrote: »
    I cannot see Tesco Bank closing their savings account. All banks maintain savings accounts even those that have derisory rates such as FD and NatWest.
    I read Herbalus's comment as many account-holders claiming that they're going to close their Tesco savings accounts (because they'll be less useful without DDs) rather than suggesting that Tesco would be withdrawing their products....
  • RG2015
    RG2015 Posts: 5,903 Forumite
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    eskbanker wrote: »
    I read Herbalus's comment as many account-holders claiming that they're going to close their Tesco savings accounts (because they'll be less useful without DDs) rather than suggesting that Tesco would be withdrawing their products....
    Thanks.

    That's at least Herbalus, EachPenny and me getting the wrong end of the stick then. :)
  • Herbalus
    Herbalus Posts: 2,634 Forumite
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    RG2015 wrote: »
    I cannot see Tesco Bank closing their savings account. All banks maintain savings accounts even those that have derisory rates such as FD and NatWest.

    Now its me misleading you. Oops!

    Yes, people closing them. Not Tesco.
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