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
    • RG2015
    • By RG2015 17th Apr 18, 10:45 AM
    • 1,301Posts
    • 767Thanks
    RG2015
    Tesco Bank reduce interest rate on savings account
    • #1
    • 17th Apr 18, 10:45 AM
    Tesco Bank reduce interest rate on savings account 17th Apr 18 at 10:45 AM
    @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.

    Looks like tesco has acted.....their internet saver has just dropped to 1.18%!
    Originally posted by niktheguru
    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/
    Originally posted by RG2015
    Last edited by RG2015; 17-04-2018 at 1:19 PM.
Page 1
    • beefturnmail
    • By beefturnmail 17th Apr 18, 10:56 AM
    • 715 Posts
    • 226 Thanks
    beefturnmail
    • #2
    • 17th Apr 18, 10:56 AM
    • #2
    • 17th Apr 18, 10:56 AM
    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
    • By Speculator 17th Apr 18, 11:03 AM
    • 1,793 Posts
    • 1,417 Thanks
    Speculator
    • #3
    • 17th Apr 18, 11:03 AM
    • #3
    • 17th Apr 18, 11:03 AM
    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.
    Originally posted by beefturnmail
    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
    • By Herbalus 17th Apr 18, 12:40 PM
    • 2,106 Posts
    • 1,741 Thanks
    Herbalus
    • #4
    • 17th Apr 18, 12:40 PM
    • #4
    • 17th Apr 18, 12:40 PM
    @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.
    Originally posted by RG2015
    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 thatís guaranteed until April 2019 as you will be aware no doubt.
    • EachPenny
    • By EachPenny 17th Apr 18, 1:01 PM
    • 6,673 Posts
    • 17,892 Thanks
    EachPenny
    • #5
    • 17th Apr 18, 1:01 PM
    • #5
    • 17th Apr 18, 1:01 PM
    The thread title made me think initially of the current account given recent BOS news, and thatís guaranteed until April 2019 as you will be aware no doubt.
    Originally posted by Herbalus
    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
    • By Herbalus 17th Apr 18, 1:09 PM
    • 2,106 Posts
    • 1,741 Thanks
    Herbalus
    • #6
    • 17th Apr 18, 1:09 PM
    • #6
    • 17th Apr 18, 1:09 PM
    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.
    Originally posted by EachPenny
    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
    • By RG2015 17th Apr 18, 1:22 PM
    • 1,301 Posts
    • 767 Thanks
    RG2015
    • #7
    • 17th Apr 18, 1:22 PM
    • #7
    • 17th Apr 18, 1:22 PM
    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.
    Originally posted by Herbalus
    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
    • By RG2015 17th Apr 18, 1:28 PM
    • 1,301 Posts
    • 767 Thanks
    RG2015
    • #8
    • 17th Apr 18, 1:28 PM
    • #8
    • 17th Apr 18, 1:28 PM
    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 thatís guaranteed until April 2019 as you will be aware no doubt.
    Originally posted by Herbalus
    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
    • By eskbanker 17th Apr 18, 1:43 PM
    • 8,009 Posts
    • 8,925 Thanks
    eskbanker
    • #9
    • 17th Apr 18, 1:43 PM
    • #9
    • 17th Apr 18, 1:43 PM
    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.
    Originally posted by RG2015
    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
    • By RG2015 17th Apr 18, 2:06 PM
    • 1,301 Posts
    • 767 Thanks
    RG2015
    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....
    Originally posted by eskbanker
    Thanks.

    That's at least Herbalus, EachPenny and me getting the wrong end of the stick then.
    • Herbalus
    • By Herbalus 17th Apr 18, 2:27 PM
    • 2,106 Posts
    • 1,741 Thanks
    Herbalus
    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.
    Originally posted by RG2015
    Now its me misleading you. Oops!

    Yes, people closing them. Not Tesco.
    • EachPenny
    • By EachPenny 17th Apr 18, 3:15 PM
    • 6,673 Posts
    • 17,892 Thanks
    EachPenny
    That's at least Herbalus, EachPenny and me getting the wrong end of the stick then.
    Originally posted by RG2015
    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
    • By AirlieBird 17th Apr 18, 4:18 PM
    • 1,039 Posts
    • 849 Thanks
    AirlieBird
    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?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
    • Herbalus
    • By Herbalus 17th Apr 18, 4:39 PM
    • 2,106 Posts
    • 1,741 Thanks
    Herbalus
    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
    • By RG2015 17th Apr 18, 5:12 PM
    • 1,301 Posts
    • 767 Thanks
    RG2015
    I'm not sure what the purpose of this thread is.
    Originally posted by AirlieBird
    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.
    Last edited by RG2015; 17-04-2018 at 5:18 PM.
    • teddysmum
    • By teddysmum 17th Apr 18, 5:42 PM
    • 9,119 Posts
    • 5,434 Thanks
    teddysmum
    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
    • By soulsaver 18th Apr 18, 1:16 AM
    • 1,954 Posts
    • 859 Thanks
    soulsaver

    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.
    Originally posted by Herbalus
    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?
    • EachPenny
    • By EachPenny 18th Apr 18, 12:07 PM
    • 6,673 Posts
    • 17,892 Thanks
    EachPenny
    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
    • By ColdIron 18th Apr 18, 12:22 PM
    • 4,558 Posts
    • 5,844 Thanks
    ColdIron
    Get a 0% purchase credit card and borrow thousands from them for nothing
    • EachPenny
    • By EachPenny 18th Apr 18, 12:43 PM
    • 6,673 Posts
    • 17,892 Thanks
    EachPenny
    Get a 0% purchase credit card and borrow thousands from them for nothing
    Originally posted by ColdIron
    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"
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

2,277Posts Today

7,170Users online

Martin's Twitter