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  • FIRST POST
    • harz99
    • By harz99 29th Nov 17, 11:49 AM
    • 2,665Posts
    • 2,595Thanks
    harz99
    Tesco new 1.35% rate (including bonus) Internet saver
    • #1
    • 29th Nov 17, 11:49 AM
    Tesco new 1.35% rate (including bonus) Internet saver 29th Nov 17 at 11:49 AM
    Seems to be a fair amount of interest, as in the half hour between my application and my wife's, the account numbers have increased by over 800.
Page 4
    • Archi Bald
    • By Archi Bald 2nd Dec 17, 8:07 PM
    • 9,366 Posts
    • 7,425 Thanks
    Archi Bald
    Originally posted by SG27
    It's a bit of a palaver to open a BM account. First deposit has to be by cheque [from the linked account], and they have to post something to you first before you can send them the cheque.

    How fast or otherwise are deposits and withdrawals once the account is fully activated?
    • clivep
    • By clivep 3rd Dec 17, 11:31 AM
    • 327 Posts
    • 164 Thanks
    clivep
    It's a bit of a palaver to open a BM account. First deposit has to be by cheque [from the linked account], and they have to post something to you first before you can send them the cheque.

    How fast or otherwise are deposits and withdrawals once the account is fully activated?
    Originally posted by Archi Bald
    Is this question regarding the BM or Tesco a/c?

    If for the Tesco a/c then until the rules change next year you can make deposits and withdrawals by faster payments so currently they are very quick.
    • Katiehound
    • By Katiehound 3rd Dec 17, 12:38 PM
    • 4,403 Posts
    • 38,791 Thanks
    Katiehound
    I'm pretty sure it's regarding the BM savings a/c.

    Sorry, I don't know as I applied for mine last week. Using it instead of one Tesco DD!
    I applied for Saga a/c probably 2 weeks ago (also BM) Have posted back cheque... waiting for instructions.
    I am planning to leave my (small) savings there for months, if not a year, and then move out.
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks

    2018 Wombling : Entrant 8 ..2280 cc+.2205mm (£2.20.5) + RK £5.21= £30.25.5
    • skitskut
    • By skitskut 3rd Dec 17, 6:34 PM
    • 174 Posts
    • 91 Thanks
    skitskut
    It's a bit of a palaver to open a BM account. First deposit has to be by cheque [from the linked account], and they have to post something to you first before you can send them the cheque.

    How fast or otherwise are deposits and withdrawals once the account is fully activated?
    Originally posted by Archi Bald
    Once fully activated you can FP in and out. In straight to the BM account and out via the linked account.
    • Snowbelle
    • By Snowbelle 3rd Dec 17, 8:22 PM
    • 333 Posts
    • 95 Thanks
    Snowbelle
    Having opened my account on 29th November afternoon, it's well past the 48 hour period, yet I am still unable to move funds out of the account.
    Originally posted by ToTo Man
    Same here - wonder if they don't count the weekend in the 48hrs?
    • Katiehound
    • By Katiehound 3rd Dec 17, 10:22 PM
    • 4,403 Posts
    • 38,791 Thanks
    Katiehound
    Same here - wonder if they don't count the weekend in the 48hrs?
    Originally posted by Snowbelle
    see posts #28 & #59
    Might work for you
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks

    2018 Wombling : Entrant 8 ..2280 cc+.2205mm (£2.20.5) + RK £5.21= £30.25.5
    • Missus Hyde
    • By Missus Hyde 3rd Dec 17, 10:27 PM
    • 356 Posts
    • 461 Thanks
    Missus Hyde
    Having opened my account on 29th November afternoon, it's well past the 48 hour period, yet I am still unable to move funds out of the account.
    Originally posted by ToTo Man
    I opened an internet saver with Tescoís about 3-4 weeks ago and although I could fund the account, I had a hell of a problem actually withdrawing money from it. The reason was that I opened a joint account with my husband and although we both have current accounts with them, so they have all our details, they seemed to be incapable of marrying all of our details together (the modern problem of the right hand having no idea what the left is doing).

    I rang them three times in all, getting progressively more annoyed with each phone call; I started off as sweet as pie to begin with, but after having been faithfully promised that it would be sorted after each call and then finding that absolutely nothing was happening, I lost patience with them and had to resort to telling them in no uncertain terms that it was not good enough and I was staying on the phone until I could actually move money around whilst they were still on the line to ensure that everything was working correctly.

    Eventually it was sorted, but only because I kicked up a stink and I felt that it was an unnecessary fuss, over something which should be straightforward.

    I notice that we are receiving the 1.35% interest, however, so theyíve actually managed to get that right, which is a mercy!
    It's a far, far better thing that I do, than I have ever done; it is a far, far better rest that I go to, than I have ever known........Sydney Carton.
    • Snowbelle
    • By Snowbelle 4th Dec 17, 7:51 AM
    • 333 Posts
    • 95 Thanks
    Snowbelle
    see posts #28 & #59
    Might work for you
    Originally posted by Katiehound
    Have tried this morning. Internal transfers don't work either. I will have to call them later.
    • littlemissbossy
    • By littlemissbossy 4th Dec 17, 10:02 AM
    • 630 Posts
    • 1,576 Thanks
    littlemissbossy
    Have tried this morning. Internal transfers don't work either. I will have to call them later.
    Originally posted by Snowbelle
    I am in the same boat too.
    Don't wait for your ship to come in, swim out to it.
    • djg3
    • By djg3 4th Dec 17, 10:27 PM
    • 5 Posts
    • 1 Thanks
    djg3
    I'm an existing Tesco customer. I have a current account, and an old savings account paying 0.4%. I opened the new account on line on Monday. Transferred money into it straight away. I now can't withdraw from the account!

    Someone suggested on another thread that Tesco make you wait 24 48 hours before letting you withdraw money, but this time had passed, it's not in the T&Cs, it's meant to be instant access, and the money shows as available. I just can't withdraw it!

    I imagine a phone call will sort this out.
    Originally posted by Nick_C

    I opened the new account last week & transferred money from another Tesco savings account. Iím still unable to withdraw any money from the new account when the 48 period has well been passed. I telephoned & they said it was because they had a backlog of processing all the new accounts. Iíve been a Tesco Bank customer for years & never had this problem before. Itís so frustrating & thankfully I can access funds in another account with a different bank. Just hope they get it sorted quickly.
    • Nick_C
    • By Nick_C 4th Dec 17, 11:21 PM
    • 3,811 Posts
    • 5,237 Thanks
    Nick_C
    Just to update on my own experience. Opened my account Monday. Withdrawals became available on Friday. I didn't contact them as I knew they were very busy.
    • Snowbelle
    • By Snowbelle 5th Dec 17, 8:05 AM
    • 333 Posts
    • 95 Thanks
    Snowbelle
    I opened the new account last week & transferred money from another Tesco savings account. Iím still unable to withdraw any money from the new account when the 48 period has well been passed. I telephoned & they said it was because they had a backlog of processing all the new accounts. Iíve been a Tesco Bank customer for years & never had this problem before. Itís so frustrating & thankfully I can access funds in another account with a different bank. Just hope they get it sorted quickly.
    Originally posted by djg3
    Thats what I was also told yesterday. I can now make withdrawals on my account.
    • Westie983
    • By Westie983 6th Dec 17, 11:11 AM
    • 4,333 Posts
    • 14,890 Thanks
    Westie983
    Im still waiting also....

    Luckily I funded the higher rate Internet saver so getting 1.35 rather then the lower ones.

    Waiting to transfer out of the IS into my Tesco current account.

    I called yesterday and was told the same as above, so let hope it releases by Friday.

    Westie983
    Save 12k in 2018 #10 Total (£25,000)+£10,000/£12,000 = 83.33%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £40/£500 = 8.00% ( x 11)
    Xmas 2018 £1 a Day #2 Total £62.59/£365 = 17.14%
    Virtual Sealed Pot #1 Total £750/£1,000 = 75.00%
    £2 Savers Club 2018 #16 Total (£1,500)+-480/£2,000 = 51.00%

    Total £11,872.59/£15,865 = 74.83%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • caveman38
    • By caveman38 9th Dec 17, 4:01 PM
    • 913 Posts
    • 291 Thanks
    caveman38
    Although now only 1.2%. My wife has opened another Internet Saver added to her FR Bond and 2 other Internet Savers used for DD's. Anyone know why she cannot make payment but can transfer from other accounts internally and externally.
    Surely she hasn't got to wait for welcome pack for proof of address and ID, has she?
    • hoc
    • By hoc 29th Dec 17, 2:34 PM
    • 234 Posts
    • 140 Thanks
    hoc
    Unless you need to actually spend the interest each month, there is really no logical argument for settling for a lower AER simply because interest is paid monthly.
    Originally posted by colsten
    The logical argument is to ensure interest is spread evenly to avoid big variation in taxes assessed from April to April. If the money isn't withdrawn and interest compounds the result is the same. When the option exists, monthly interest is the better choice.
    • colsten
    • By colsten 29th Dec 17, 2:51 PM
    • 9,010 Posts
    • 7,757 Thanks
    colsten
    The logical argument is to ensure interest is spread evenly to avoid big variation in taxes assessed from April to April.
    Originally posted by hoc
    What problem(s) do you perceive with big variations? How do you define 'big variation'?
    • bowlhead99
    • By bowlhead99 29th Dec 17, 3:04 PM
    • 7,835 Posts
    • 14,310 Thanks
    bowlhead99
    The logical argument is to ensure interest is spread evenly to avoid big variation in taxes assessed from April to April. If the money isn't withdrawn and interest compounds the result is the same. When the option exists, monthly interest is the better choice.
    Originally posted by hoc
    I don't follow that logical argument.

    If you ask to receive the interest monthly rather than waiting to receive it at the end of the year, you will receive more of it sooner rather than later and tax will be due in an earlier tax year.

    For someone whose marginal tax rate is going to be higher in the next tax year I suppose they would want to get the interest dealt with quicker. For the rest of us, if we don't need to receive the money now to spend it, we would prefer to deal with it as taxable income in a later tax year when we have lower income, larger allowances or have had more time to have made other tax planning arrangements.

    It doesn't follow that monthly is "the better choice".
    • ColdIron
    • By ColdIron 29th Dec 17, 3:50 PM
    • 4,158 Posts
    • 5,245 Thanks
    ColdIron
    monthly interest is the better choice.
    Originally posted by hoc
    In some circumstances it is but in some other circumstances it isn't

    I have lower taxable income this year than last so arranged to move as much into this year as I could, using annual interest, to take advantage of a lower rate and various allowances. If I had taken monthly interest I might have paid 40%, whereas this year I will pay no tax at all on some of it. Hardly a better choice

    Horses for courses
    • Malchester
    • By Malchester 29th Dec 17, 5:31 PM
    • 100 Posts
    • 55 Thanks
    Malchester
    Yes I agree. I have monthly interest wherever possible as it spreads out interest throughout the year and avoids a large interest payment which could need tax to be paid
    • hoc
    • By hoc 30th Dec 17, 4:04 PM
    • 234 Posts
    • 140 Thanks
    hoc
    What problem(s) do you perceive with big variations? How do you define 'big variation'?
    Originally posted by colsten
    See below.

    I don't follow that logical argument.

    If you ask to receive the interest monthly rather than waiting to receive it at the end of the year, you will receive more of it sooner rather than later and tax will be due in an earlier tax year.

    For someone whose marginal tax rate is going to be higher in the next tax year I suppose they would want to get the interest dealt with quicker. For the rest of us, if we don't need to receive the money now to spend it, we would prefer to deal with it as taxable income in a later tax year when we have lower income, larger allowances or have had more time to have made other tax planning arrangements.

    It doesn't follow that monthly is "the better choice".
    Originally posted by bowlhead99
    What you state is true and is precisely the issue. Few will look to the benefits of the scenario you describe (intentionally timing for tax year) with savings accounts (unlike more strategic plans like tax loss on shares dealing), but they will disadvantaged (or, at least, have no choice) with the timing variations.

    There is no standard definition of "annual", some pay on account anniversary e.g. Sainsburys, some pay on arbitrary e.g. Nationwide in October, some pay just before tax year e.g. Virgin. In today's world where rates are frequently changing and people swapping across these it is very easy to end up with lop sided payments e.g. 1 year's worth from one and 1.5 year's worth from another in same tax year.

    Monthly payments do not have these concerns, it is a matter of an extra month's payment at most, and with the monthly amounts compounding when not withdrawn the outcome is the same. Monthly gives the additional flexibility if skimming interest, and when not it is all equal so monthly should be the preferred default. Only in a scenario like the one you describe to intentionally manipulate balance from one year to the next for tax purposes is there any merit in choosing annually paying ones to extend/shorten the cycles.

    In some circumstances it is but in some other circumstances it isn't

    I have lower taxable income this year than last so arranged to move as much into this year as I could, using annual interest, to take advantage of a lower rate and various allowances. If I had taken monthly interest I might have paid 40%, whereas this year I will pay no tax at all on some of it. Hardly a better choice

    Horses for courses
    Originally posted by ColdIron
    Yes, fine, you are describing the same scenario as done already by bowl. Annual can occasionally be beneficial to juggle tax years but I would strongly disagree this should be the default advice given on a forum such as this. There will always be exceptions, horses for courses, etc., and some users who insist on sticking to making a technical point rather than see big picture or have humility to drop an argument.
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