Tesco Bank Current Account - 3% AER - reopened for applications
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Tesco Bank Current Account - 3% AER - reopened for applications

22
Found 4th Apr 2017
Looks like Tesco are reopening applications for their Current Account with 3% interest. Sadly they've applied some more conditions to receiving it for new applications:

Current Account - Important information
With effect from 4 April, our Current Account Guarantee has changed for new applications. To earn 3% AER credit interest on balances up to £3,000 until April 2019, you must now pay in at least £750 per statement month, and pay at least three direct debits each statement month (excluding direct debits to Tesco Bank savings accounts).

That last bit makes it a bit harder to jemmy it, but still hope this is useful. 3% on up to £3k guaranteed until April 2019 isn't to be sniffed at, and you get extra points for using it at Tesco too.

At the time of writing, it appears new to Tesco Bank customers are unable to apply ("down for maintenance"), but if you have a Tesco Bank Credit Card or Savings account you can log in and apply from the Online Banking Overview.
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22 Comments
3 direct debits. Ouch !
elektra

3 direct debits. Ouch !


Yeah, I should be able to do that with a little bit of rearranging (currently have 2 in Halifax which could be swapped out with Tesco Savers, and a few Credit Card regular payments which I can move about).

I'm more excited about the extra Clubcard points...
elektra

3 direct debits. Ouch !



Gas/Electric = 1, one credit card = 2, (set up a DD to pay in full and use for one purchase per month) and Council Tax makes 3 !
My local council will adjust for 12 payments PA instead of 10 if you ask them.
pa55word123

Gas/Electric = 1, one credit card = 2, (set up a DD to pay in full and … Gas/Electric = 1, one credit card = 2, (set up a DD to pay in full and use for one purchase per month) and Council Tax makes 3 ! My local council will adjust for 12 payments PA instead of 10 if you ask them.


I'd personally recommend putting Gas, Electricity and Council Tax through Natwest Reward for 3% cashback.
Gosh, minimum funding and direct debits! That definitely blocks the attractiveness of the account. Just the same as all the others now, though guessing that's the whole point. Glad I got my two opened before they closed. Sad for others though.
WillPS

I'd personally recommend putting Gas, Electricity and Council Tax through … I'd personally recommend putting Gas, Electricity and Council Tax through Natwest Reward for 3% cashback.


Ditto, add mobile phone, broadband, TV etc to that too and if it's a joint account you both get the benefits ie mobile phone insurance.
Charity direct debits start from £1 a month, which isn't much but it's a pound more than they had and if everyone gave a pound?!
If you're struggling for the DD's on an account like?
Edited by: "defgimp" 4th Apr 2017
unuspromulti

Ditto, add mobile phone, broadband, TV etc to that too and if it's a … Ditto, add mobile phone, broadband, TV etc to that too and if it's a joint account you both get the benefits ie mobile phone insurance.


Are you saying that NatWest Reward account includes mobile insurance? If it does I missed that one, thanks.
Shouldn't be cold, still the best interest in a current account for this amount, despite the added restrictions meaning you actually have to use it like a normal bank account.
Edited by: "Ashe" 4th Apr 2017
ched999uk

Are you saying that NatWest Reward account includes mobile insurance? If … Are you saying that NatWest Reward account includes mobile insurance? If it does I missed that one, thanks.


Sorry should've been clearer, I forget that I'm on the Reward Silver which is the same but has mobile and travel insurance etc but costs £12 instead of £3. Works for me as £9 extra for mobile insurance for both of us is decent plus you get Taste cards etc if you'd use those.
Ashe

Shouldn't be cold, still the best interest in a current account for this … Shouldn't be cold, still the best interest in a current account for this amount, despite the added restrictions meaning you actually have to use it like a normal bank account.


Agreed. The only account that beats it is Nationwide FlexDirect, but that's limited to 1 yr.
just a note the natwest account

Please note that, up to 25th June 2017, the Reward Account monthly account fee is £3 and you will earn 3% back in Rewards on any qualifying household bill Direct Debits.

From the 26th June 2017, the Reward Account monthly account fee will reduce to £2 and you will earn 2% back in Rewards on any qualifying household bill Direct Debits.
blinko

just a note the natwest account Please note that, up to 25th June 2017, … just a note the natwest account Please note that, up to 25th June 2017, the Reward Account monthly account fee is £3 and you will earn 3% back in Rewards on any qualifying household bill Direct Debits. From the 26th June 2017, the Reward Account monthly account fee will reduce to £2 and you will earn 2% back in Rewards on any qualifying household bill Direct Debits.


Thanks for pointing that out, bit of a bummer.
Total rubbish for me now as I don't pay any bills, other half pays everything It was great when there was no requirement to have DD's paid out.
jmb

Total rubbish for me now as I don't pay any bills, other half pays … Total rubbish for me now as I don't pay any bills, other half pays everything It was great when there was no requirement to have DD's paid out.



Reeeeeeelax, this only applies to "NEW" account owners, existing customers will still be on the original T&Cs (_;)
Would existing customers opening a second account be subject to the new terms and conditions on that second account?
Edited by: "throwawaysociety" 4th Apr 2017
throwawaysociety

Would existing customers opening a second account be subject to the new … Would existing customers opening a second account be subject to the new terms and conditions on that second account?


I would guess that yes, they would - but I reckon you'll only know by giving it a try.
WillPS

I would guess that yes, they would - but I reckon you'll only know by … I would guess that yes, they would - but I reckon you'll only know by giving it a try.


You are correct!
Has anyone got any crafty ideas for paying the DD's? I worked out ( I think, if my sums are correct) that if you're forced to pay £3 per month to charities the effective rate is 2.3% which is still pretty good, but one or two DD's funding your own accounts could raise it.
throwawaysociety

Has anyone got any crafty ideas for paying the DD's? I worked out ( I … Has anyone got any crafty ideas for paying the DD's? I worked out ( I think, if my sums are correct) that if you're forced to pay £3 per month to charities the effective rate is 2.3% which is still pretty good, but one or two DD's funding your own accounts could raise it.


If you have any monthly credit card payments (Netflix or similar) move them to a credit card (ideally a dormant one you have), then set up a monthly direct debit to pay in full?
WillPS

If you have any monthly credit card payments (Netflix or similar) move … If you have any monthly credit card payments (Netflix or similar) move them to a credit card (ideally a dormant one you have), then set up a monthly direct debit to pay in full?



Good idea but unfortunately I have nothing like that...I think I've got it worked out though. I remember I had an old post office savings account which has a direct debit function , so I am going to re-open one of those specifically for this purpose (all the t&c's suggest it's the same as before but I will see...) For the second I will put the interest + a few pound into Ratesetter and for the third I will either feed my LISA monthly or give it to a charity. I wish I had just opened a second account now before they added all these hoops to jump through
Asked them today and got this reply.... "your second application would be considered a new application and therefore the new criteria would be applicable. If you opened the account you currently have before the new rules then there will be no changes to that account. However, for any new applications, including secondary accounts, the new rules will apply, I hope that makes sense!
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