Tesco Bank reduce interest rate on savings account

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  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    RG2015 wrote: »
    That's at least Herbalus, EachPenny and me getting the wrong end of the stick then.

    Well I'm still in the middle of reorganising my DD's from before the news about Lloyds/BoS, and my brain is having to juggle so much that anything else would easily manage to confuse me ;)
    "In the future, everyone will be rich for 15 minutes"
  • AirlieBird
    AirlieBird Posts: 1,046 Forumite
    The thread title could mislead some people. They haven't reduced any interest rates on their savings accounts. They are offering a lower rate for new accounts than yesterday.

    I'm not sure what the purpose of this thread is. Existing accounts are unaffected and Tesco change the interest rates for new accounts up and down all the time, with the last downward change less than 2 weeks ago. I don't recall any threads about previous downward movements on offer for new accounts. Not being critical, just curious as to why the need to mention it this time?
    Did you really mean to put loose?
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  • Herbalus
    Herbalus Posts: 2,634 Forumite
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    I think the purpose is discussion around interest rates because of recent changes. Elsewhere it appears that Tesco is a likely destination for decent sums after the changes to BOS take effect, so its circumstantial that they appear linked. One poster elsewhere has already jumped, and presumably gained the savings account before the bonus rate was cut for new savers.

    The timing is curious, and if you say they reduced rates 2 weeks ago also, that reduces the chance that this rate drop is a consequence of BOS/lloyds. That in itself is a valuable contribution as it disuades the current thinking on this thread. I wasnt aware they dropped the rate 2 weeks ago also.

    For existing account holders they will have a bonus rate locked in for a year, plus the base rate. It would be clear to them (hopefully) that their rates are fixed for a year at least, so not impossible to assume they will understand the title doesnt include their own accounts.
  • RG2015
    RG2015 Posts: 5,900 Forumite
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    edited 17 April 2018 at 5:18PM
    AirlieBird wrote: »
    I'm not sure what the purpose of this thread is.
    I believe that any forum is a place where discussions take place to share ideas and inform people. Other people have joined the discussion and your post is particularly informative.

    Even questioning the purpose of thread is a useful contribution as it shows that the issues are being examined from several angles.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    For once I've fallen on the right side of a rate change, as last week I opened another online saver (1.25%) to overlap with my 1.26% due to lose bonus in July.
  • soulsaver
    soulsaver Posts: 5,960 Forumite
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    Herbalus wrote: »

    For existing account holders they will have a bonus rate locked in for a year, plus the base rate. It would be clear to them (hopefully) that their rates are fixed for a year at least, so not impossible to assume they will understand the title doesnt include their own accounts.

    Eh? If the base rate is variable why would an account holder with a fixed bonus + variable base believe their 'rate' is fixed for a year?
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  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    I had an email this morning from Tesco offering me a 3% APR loan. How nice of them to offer to lend my money back to me for far more than they are giving me. ;)
    "In the future, everyone will be rich for 15 minutes"
  • ColdIron
    ColdIron Posts: 9,009 Forumite
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    Get a 0% purchase credit card and borrow thousands from them for nothing :cool:
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    ColdIron wrote: »
    Get a 0% purchase credit card and borrow thousands from them for nothing :cool:

    I get those emails too... telling me I'm pre-approved despite them knowing I don't meet their criteria ;)
    "In the future, everyone will be rich for 15 minutes"
  • Herbalus
    Herbalus Posts: 2,634 Forumite
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    soulsaver wrote: »
    Eh? If the base rate is variable why would an account holder with a fixed bonus + variable base believe their 'rate' is fixed for a year?

    Presumably people would know the base rate hadnt changed when this thread started, so their fix meaning Tesco hasnt lowered the rate for them, results in their rate not changing. Their rate is fixed pending movements in base, which hasnt happened (recently).

    Makes more sense with the context above.
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