i opened a new internet savers account when the interest rate with bonus was 1.40.
Shortly after i opened my account the intrest rate went up to 1.42 and currently is now 1.45.
Why has my savings account still showing the old rate of 1.40 will this not increased to the new rate of 1.45? The information seams to indecate the interest rate is variable on accounts?
Will it increase or will i have to open a new account again to get the benifit of the new current rate?
Solved! Go to Solution.
Hi @bearback, thanks for getting in touch. The interest rate can change at any point, however, if the rate goes up on the account you have you would need to go through a new application to get the new rate. Apologies for any inconvenience.
How ridiculous to have to apply for a new account each time the rate changes.
wasted time for both the customer and tescos, the resources could be put to use else were.
thank you for the reply though :)
I’m sorry for the inconvenience this causes @bearback, I’ll pass on your feedback to the appropriate team.
I too am in the same position. The clue is in the word 'variable'. Does this mean 'variable' only kicks in when rates are reduced and not increased?
Your interest rate is made up of two parts. A fixed bonus interest rate which is valid for a 12 months, and a variable base rate. If the bonus rates we offer for new accounts changes then your existing bonus rate won't change. If we change the base variable rate then all accounts will reflect the change.
That makes some sense and a better explanation on why the rate on my account has not increased. The "variable" base rate had not changed, only the bonus part increased (0.85-0.90).
Every penny counts on the poor rates that are offered now days , i have opened a new account.