Tesco current account pays 3% AER on savings balances up to £3,000 guaranteed from April 2017 - April 2019
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Tesco current account pays 3% AER on savings balances up to £3,000 guaranteed from April 2017 - April 2019

500
Found 5th FebMade hot 5th Feb
Best saving rate on the market. It pays an attractive 3% on balances of up to £3,000, and there are no requirements for customers to pay in a minimum amount (ie their salary or pension) every month, or even set up any direct debits.

On top of that, each individual can have up to two accounts. So someone who opens both and puts £3,000 into each would receive a total of £180 interest a year.Theoretically, a couple could open four Tesco accounts and earn 3% on £12,000 – £360.

Top comments

I’ve mocked up what 50K in savings can get a single person. Around £1140 – tax (including two Tesco’s current accounts) you will need £1514 to £1519 (Santander 123 charges £5 monthly) per month to move between accounts and two direct debits per account. Two Tesco’s savings accounts can facilitate this. This is just for the direct debit and standing orders required for the loophole to work. Max out these accounts then max out the ISA/ Savings accounts (dependant on the % offered).

http://i1217.photobucket.com/albums/dd381/Ace_demo2/DD-SO%20flow_zpslnyov4pu.jpg



Edited by: "AR2012" 8th Feb
500 Comments

u can have 2 accounts

It appears that you can not just open an account - you need to switch from your current bank.
Is that correct ?

Thanks

You can "just open an account" no switching required.

Many thanks.
Santander sucks now.

Didn't these guys get hacked recently, people accounts had money taken and accounts got locked out for days, direct debits weren't serviced as well.

If you don't value your money, every little bit helps the hackers! lol at the fact they increment the long card numbers by 1 for each new customer, instead of randomising the long card number. amateur hour.com!

So by my maths you make £180 from 3k then Pedro from Brazil will nick the lot.

Apparently they only managed 136,000 current accounts last November before the hack, probably only got a few accounts hence the offer.

Finally I point you to these articles about the state of their IT systems, good luck with your money:

I worked on a TB project that had to verify certain customer information on Tesco systems. The Tesco system would fall over on a regular basis, and we would have to tell Tesco it was down – they wouldn't monitor it. It later became clear that it was an app server running on a very outdated piece of middleware, completely unpatched. This was standard for Tesco systems. [The] only exception was the credit card payment system, which was secure because it was regulated. Separately I was aware of an effort to tie some TB systems more closely to Clubcard. However, it had to be abandoned once the architects discovered how insecure Clubcard itself was.

https://www.theregister.co.uk/2016/11/30/tesco_bank_breach_former_insider_breach_theory/

"Three unspecified sources told The Times that while most banks updated their systems; Tesco Bank allegedly ignored the warning, leaving its systems vulnerable to cyberattacks. In the event that the probe finds any evidence of the bank having ignored warnings, Tesco Bank could face penalties as well as potential backlash from its customers."

ibtimes.co.uk/tes…709




Edited by: "cf15" 6th Feb

csf

Didn't these guys get hacked recently, people accounts had money taken … Didn't these guys get hacked recently, people accounts had money taken and accounts got locked out meaning direct debits weren't taken?


I imagine they would have updated their security now, so even safer. Opened one, how do you open a second one?

Decent deal, so long as you don't live in Northern Ireland..

pjmcc

Decent deal, so long as you don't live in Northern Ireland..



It not available in n.i. ?
It let me put in a bt postcode and didnt complain, but I dont want to proceed through all the applying nonsense if at the end it says not avail in n.i.

Edited by: "elephantsoup1" 5th Feb

6k put away for a year for £180. bit naff when its written down

Bendown

I imagine they would have updated their security now, so even safer. … I imagine they would have updated their security now, so even safer. Opened one, how do you open a second one?


Easy! You need to have the first one fully set up and then just go through the application process for the second account whilst logged in (I happened to have my original account open in another tab so I don't know if it's strictly necessary) and because you've already got a Tesco current account, you only have to answer a handful of questions and then you're done.

Does anyone know if you can open up a joint account as well?

peanuted

6k put away for a year for £180. bit naff when its written down


Any better suggestions that are risk free ?

woldranger

Easy! You need to have the first one fully set up and then just go … Easy! You need to have the first one fully set up and then just go through the application process for the second account whilst logged in (I happened to have my original account open in another tab so I don't know if it's strictly necessary) and because you've already got a Tesco current account, you only have to answer a handful of questions and then you're done.Does anyone know if you can open up a joint account as well?


The answer to this is in the terms and conditions..

"You can’t have more than two Tesco Bank Current Accounts (or one if you have a Tesco Bank Clubcard Plus account), whether solely or with another person."

woldranger

Easy! You need to have the first one fully set up and then just go … Easy! You need to have the first one fully set up and then just go through the application process for the second account whilst logged in (I happened to have my original account open in another tab so I don't know if it's strictly necessary) and because you've already got a Tesco current account, you only have to answer a handful of questions and then you're done.Does anyone know if you can open up a joint account as well?


Thanks

Why only guaranteed from April 2017?

Is this guaranteed to April 2019 if you already have an account?

peanuted

6k put away for a year for £180. bit naff when its written down



Very naff, but theres nothing better out there, my isa makes half that

Thanks for telling us. Easy to set up joint account with grandson over 18 years.

peanuted

6k put away for a year for £180. bit naff when its written down



I'm making 5.7% on recent investments, it was 11% so yes I'm beating the banks for savings but it's nothing amazing. Anyway I'll see where I'm at in 25 years time when I retire.

Cheers op.... Just opened one..ta

fishmaster

I'm making 5.7% on recent investments, it was 11% so yes I'm beating the … I'm making 5.7% on recent investments, it was 11% so yes I'm beating the banks for savings but it's nothing amazing. Anyway I'll see where I'm at in 25 years time when I retire.



Stocks I assume?

As there a £3k limit on interest being paid do you have to move the interest off the account to keep it £3K and under each month?

Bendown

Any better suggestions that are risk free ?



Yes.

Nationwide FlexDirect current account paying 5% on up to £2.5k (fixed for 12 months). They also have a Flexclusive Regualr Saver paying 5% interest - rate is variable but it's remained at 5% for over a year. Also, you can get £100 if you're recommended by another Nationwide customer when you switch.

They do have a pay in requirement, but you can pay in and pay out the monthly requirement via a standing order which just takes 5 minutes and the rest is done automatically.
Edited by: "karlie88" 5th Feb

karlie88

Yes.Nationwide FlexDirect current account paying 5% on up to £2.5k (fixed … Yes.Nationwide FlexDirect current account paying 5% on up to £2.5k (fixed for 12 months). They also have a Flexclusive Regualr Saver paying 5% interest - rate is variable but it's remained at 5% for over a year. Also, you can get £100 if you're recommended by another Nationwide customer when you switch.They do have pay in and Direct Debit requirements, but DDs can be sorted within 5 minutes and you can pay in and pay out the monthly requirement via a standing order which again just takes 5 minutes and the rest is done automatically.



​Are you sure there are direct debit requirements. I set up 3 accounts last month and no need for direct debits. Just have to pay £1k into each account per calendar month

peanuted

6k put away for a year for £180. bit naff when its written down


it is really when you consider some people (including those giving you this fantastic offer) earn much more than that an hour!
The more you multiply it the naffer it sounds. 12k locked away for 360. 24k away for 720. 48k for less than 15 hundred.

vulcan903

As there a £3k limit on interest being paid do you have to move the … As there a £3k limit on interest being paid do you have to move the interest off the account to keep it £3K and under each month?



You just wont earn interest on that amount.

Well I did win £50 on ERNIE this month with the max amount!!!! Crazy world.

sjoyce666

​Are you sure there are direct debit requirements. I set up 3 accounts l … ​Are you sure there are direct debit requirements. I set up 3 accounts last month and no need for direct debits. Just have to pay £1k into each account per calendar month



Ta - post amended. Got confused with other accounts that need DDs

So would I be right in thinking I could use this as a savings account and just put £3000 in this account and just leave it there make no further deposits or withdrawals for the year, just to get the 3%

definitely going to have a couple of these. one for me and one for the missus. Santander is full and also got three nationwide flex directs which are full. something like this Tesco one will be great to stick a few more k in. people moaning about it not being much money earned over the year, suggest something else or send £180 to me if it does not meant much to you. cheers. ;-)
Edited by: "roblatus" 5th Feb

thanks op, loads better rate than my pitiful ISA

goldy12

So would I be right in thinking I could use this as a savings account … So would I be right in thinking I could use this as a savings account and just put £3000 in this account and just leave it there make no further deposits or withdrawals for the year, just to get the 3%



Yes, but you can put £6,000 in via opening two accounts which is allowed.

roblatus

definitely going to have a couple of these. one for me and one for the … definitely going to have a couple of these. one for me and one for the missus. Santander is full and also got three nationwide flex directs which are full. something like this Tesco one will be great to stick a few more k in. people moaning about it not being much money earned over the year, suggest something else or send £180 to me if it does not meant much to you. cheers. ;-)



Or two for you and two for the misses. It's better than the Santander rate. And I believe you can get a 5th joint account but not 100% sure.

pjmcc

Decent deal, so long as you don't live in Northern Ireland..



Why no good in NI? Never had a problem with mine...

I have one current account with Tesco and one saving account that pays 1%.I will definitely open another current account.Lets face it where else can you earn 3% other than gambling on the markets.Hot.

Thar

Why only guaranteed from April 2017?



There are a number of changes being made to the account, so presumably it is to allow sufficient notice to be provided to existing account holders of those changes

ichabod05

Is this guaranteed to April 2019 if you already have an account?



I believe so. You should be advised shortly of the changes to your account (if you've not already been)

Good deal, bit long winded signing up though, apply online, wait a week, sign a form, wait a week...
Had to phone them last week for an update (3 weeks from applying) apparently mine had 'slipped through the net'

le_jaeger

Why no good in NI? Never had a problem with mine...



The account is currently not available to customers in Northern Ireland.

monitor1

...Lets face it where else can you earn 3% other than gambling on the … ...Lets face it where else can you earn 3% other than gambling on the markets....


Peer to peer lending

Currently earning about 4% (based on a rolling, monthly basis)
It.s not guaranteed, but it's not gambling either.
With the P2P I use, they have never failed to pay out even if the borrower defaults

Should have added, they have been running for about 7 years now.

Edited by: "Kool4Katz" 5th Feb
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