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Current Accounts

Will I earn interest on my current account?

If you opened your account before 1 April 2017:
Until 1 April 2019 we guarantee to pay you 3%AER credit interest on balances
up to £3,000. Please see our rates and fees to find out more information on your interest rates.


If you opened your account after 1 April 2017:
We guarantee you’ll earn 3% AER credit interest on balances up to £3,000 until 1 April 2019. In order to benefit from this, you must pay in at least £750 and have at least three direct debits paid from your account per statement month (excluding direct debits to a Tesco Bank savings account).


Please see our Current Account product details to find out more information on your interest rates.

Version History
Revision #
17 of 17
Last update:
‎04-04-2017 02:01 PM
Updated by:
 
Comments
tommy84

Hi. Do recurring card payments count in the same way as direct debits?

clivep

Hi @Pearlpoppy, were 3 of your dd's actually paid out in your first statement month (rather than just set up and remembering that your statement month runs from the day of the month your account was opened)?

Pearlpoppy

Hi,

 

My statement month commenced on 9th May when I only opened the account on 30th May. So I have lost interest on money already? Smiley Mad Not impressed

clivep

??? Your statement month usually runs from the day you apply/get accepted/receive the welcome letter. I can't see how you can have a statement date BEFORE you applied for the account. Was the 30th May really when you applied for the account rather than when you first started using it?

 

Once opened it can take a couple of weeks before you get all the documents to allow you to access the account. Setting up direct debits then takes another couple of weeks and the direct debits will then be taken some time later. Consequently, it's very unlikely that you are able to qualify to earn any interest in the first statement month after opening a new account.

 

In my case I applied/got accepted/received welcome email on 5th April. By the time I got the documentation then set up the direct debits I was 1 day too late to get the DDs taken on 16th May so the first time they would be paid out was 16th June. My first statement month started 5th April and the next on 5th May but I knew I would not get any interest in either of these months so only put the £3000 in on 5th June. Interest was paid on 5th July as expected.

 

Pearlpoppy

Sorry, no. The account opened on 9th May, but it took forever to transfer our account to Tesco, and it didn't transfer the direct debits automatically either (something that has never happened before). I manually transferred the money from our old account on 30th May and set up our direct debits. So, it looks as if we have lost out on interest for 9th May to 9th June. Obviously missed out on the small print that specified the interest commenced from statement date - naively thought that the money would attract interest as soon as it hit the account.

clivep

If you had met the conditions of the account then you would have received interest for 9th May to 9th June but I cannot see how this would have been possible. Direct debits take 10 working days (2 weeks) to become active so if you set them up on 30th May then they would not be active until 13th June yet alone having paid out.

 

Remember that with Tesco the dd's have to have paid out in the statement period and not just be regarded as active...

"To earn interest, each statement month you must pay in at least £750 and have at least three direct debits paid from your account (excluding direct debits to a Tesco Bank savings account)".

 

When were 3 of your dd's actually paid out? If they have not been by 9th July then you won't get any interest for 9th June to 9th July.

 

Pearlpoppy

5th June and two on 15th June just for starters


 


 

clivep

If these were the earliest dd payments then only 1 was in your 9th May to 9th June statement period hence no interest paid.

 

As long as the 5th June payment is a monthly dd and pays out again on 5th July you will get interest for your current statement period ending 9th July.

Pearlpoppy

Interest now received, thank you for your input Clive

JonB

Please explain the 'Paid Transaction Fee' £5 per item (up to a maximum of 10 paid or unpaid transactions per statement month)

 

The same description if listed against unpaid transaction fees which I can understand. 

 

Does this mean that every BACS transfer sent from the account costs £5? If not which paid transactions are charged at £5?

 

Thanks