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  • FIRST POST
    • newuser78
    • By newuser78 14th Mar 17, 1:53 PM
    • 185Posts
    • 35Thanks
    newuser78
    Tesco Current Bank Account
    • #1
    • 14th Mar 17, 1:53 PM
    Tesco Current Bank Account 14th Mar 17 at 1:53 PM
    Managed to sign up for a current account with Tesco which pays 3% interest of up to 3k.

    First day the account became active, I put the whole 3k into the account.

    Due to interest, the balance is now 3004.62 (exciting!), does this mean that I no longer get 3%? E.g. do I need to take 4.62 out of account?
Page 3
    • ST-User
    • By ST-User 18th Jun 18, 1:18 PM
    • 55 Posts
    • 13 Thanks
    ST-User
    Nationwide explains the same situation much better:
    "In plain English this means, you'll earn interest on the first 2,500 of your balance each month but you won't get any interest on any part of your balance over 2,500."
    • OceanSound
    • By OceanSound 8th Jul 18, 6:10 AM
    • 285 Posts
    • 37 Thanks
    OceanSound
    .....So, for example, say my account was opened on 31 May 2018. I could pay in 750 tomorrow. Then have three direct debits leave the account before 30th June (note that there is no 31st in June, so does Tesco take 30th June or the 01 of July for the end date of the statement month?)........
    Originally posted by OceanSound
    My account was actually opened on 30 May 2018. I received letter from Tesco dated next day (31 May). I was paid interest on 30 June (even though it was a Saturday!). Just out of interest, does anyone know what would have happened IF i had opened account on 31 May?, would interest have been paid on 30 June or 01 July?
    BTW: anyone setting-up DD's, start doing it early. I just about snuck-in with the last two DD's paid out on 28 June. It was edge of the seat stuff. Real Nail biter!. Of course, this was partly due to activating the account as late as 18 June.
    Last edited by OceanSound; 08-07-2018 at 6:16 AM.
    • pafpcg
    • By pafpcg 8th Jul 18, 1:08 PM
    • 234 Posts
    • 213 Thanks
    pafpcg
    My account was actually opened on 30 May 2018. I received letter from Tesco dated next day (31 May). I was paid interest on 30 June (even though it was a Saturday!). Just out of interest, does anyone know what would have happened IF i had opened account on 31 May?, would interest have been paid on 30 June or 01 July?
    Originally posted by OceanSound
    First, Tesco Bank operates on the principle that every day is a working day, so transactions will occur without regard to whether it is a weekend day or bank holiday. This makes Tesco very useful if you need a future-dated payment to go out on, say, a Sunday; payments will go out on the date specified with no waiting for the next working day as at "traditional" banks.

    Interest is paid on the day of the month you opened the account - one of my accounts also pays interest on the 30th and you'll get it whatever the day of the week it is. It'll appear on the last day of February (28th or 29th). But it won't be credited to your account until late in the day, so effectively you won't be able to withdraw the interest until the following day. You'll get an email on the day following the interest payment - I use that as the reminder to check the account and move the interest.

    If you'd opened the account on the 31st, you'd receive the interest on the 30th for 30-day months. The payment would, of course, only be for 30 days.
    • OceanSound
    • By OceanSound 8th Jul 18, 3:45 PM
    • 285 Posts
    • 37 Thanks
    OceanSound
    ...You'll get an email on the day following the interest payment
    Originally posted by pafpcg
    I received an email on 01 July saying the statement (including notification of fees and interest) is available to be viewed in the document store.
    When I checked statement, it had the following:
    During this statement month you have met the conditions to receive the 2.96% rate of credit interest.
    I've seen on this forum that members receiving 7.50 or 7.51 per month interest. That's interest at 3.00%. If the rate is 2.96%, I'm bound to receive less than 7.50/7.51. How come?
    I use that as the reminder to check the account and move the interest
    Good idea. To satisfy the pay in part of the condition, I presume we can move 750 to a Tesco online savings account, then move it back.... Terms and conditions says 'pay in at least 750'. What I've just described does that, no?
    • pafpcg
    • By pafpcg 8th Jul 18, 4:15 PM
    • 234 Posts
    • 213 Thanks
    pafpcg
    To satisfy the pay in part of the condition, I presume we can move 750 to a Tesco online savings account, then move it back....
    Originally posted by OceanSound
    Yes! That'll be enough.
    • pafpcg
    • By pafpcg 8th Jul 18, 4:24 PM
    • 234 Posts
    • 213 Thanks
    pafpcg
    I've seen on this forum that members receiving 7.50 or 7.51 per month interest. That's interest at 3.00%. If the rate is 2.96%, I'm bound to receive less than 7.50/7.51. How come?
    Originally posted by OceanSound
    The interest rate is 2.96% GROSS (3%AER). If you keep 3,000 balance for the full month and meet the terms, you should be credited with 7.54 in 31-day months and 7.29 in 30-day months.
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