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internet savers account interest rate question

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Just Getting Started

internet savers account interest rate question

Hi

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?

Thank you

 

 

6 REPLIES
Your Community Expert

Re: internet savers account interest rate question

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.   

Just Getting Started

Re: internet savers account interest rate question

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 :) 

Your Community Expert

Re: internet savers account interest rate question

I’m sorry for the inconvenience this causes @bearback, I’ll pass on your feedback to the appropriate team.

Occasional Browser

Re: internet savers account interest rate question

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 Community Expert

Re: internet savers account interest rate question

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.

Just Getting Started

Re: internet savers account interest rate question

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.

thank you