[savermum]

Whilst interest rate rises for savers are good, the current frequency of same and the fact Tesco do not (unlike some banks), automatically place existing accounts on the newer rate, is frustrating. For existing customers, their loyalty is not automatically rewarded and instead (if they want to have the better rate), they face an endless cycle of having to go through the process of opening each new incarnation of the account and moving funds from the previous incarnation, then either leaving the previous one sitting with £0/£1 or so in it, or having the hassle of phoning to have the account closed (as there is no option to close it whilst logged online).

Can Tesco advise if they have any plans to change any of this? From memory, earlier in year there was one interest rise that was applied by Tesco to existing saver accounts without the need for any action by customer, so it would seem this much easier option is possible.

Can Tesco also advise if the full interest earned to date (ie basic + bonus), is paid at closure if closure happens at a point where account is less than 1yr old (and at moment, quite possibly less than 1 month old), given both are normally paid at different points in year?

Edit:

Forgot to say, opening each new incarnation of the saver accounts is becoming a green/environmental issue too, given the resulting paperwork that is sent in the post...it must be having a negative impact on Tesco's green/environmental targets as well !

[RobbieT]

Hi @savermum, thanks for getting in touch. I'm afraid we don't have an automatic process for this. If you were looking to apply for a new account with a different rate, this would need to be done manually. However, I've passed your comments on as feedback to the relevant team. We regularly review feedback to improve our processes and customer experience.

In terms of interest, that's correct! All interest earned, including any bonus interest, will be paid up to the point the account is closed if it has been open for less than a year. I hope this clarifies things.

[savermum]

Hello Robbie.

Thanks for taking the time to add a reply. It is appreciated, even if you have perhaps avoided answering one of my main questions, ie "Can Tesco advise if the have any plans to change any of this?".

You have said "I'm afraid we don't have an automatic process for this" and basically advised, as I already knew was the case, I need to open a fresh account after each and every interest rise, transfer the money from the previous account, and receive in the post all the new account paperwork (the latter not being environmentally friendly at all if it is happening regularly).

So, I will slighly re-word my question and ask again:

Given the current frequency with which interest rates are rising, and especially given what Tesco did back in January, are you aware of any plans Tesco might have to make life simpler for existing, loyal customers, by automatically increasing the underlying rate on their Internet Savers to match the latest rate each time it changes, thereby avoiding the need for said customer to have to keep opening new accounts, transferring money each time from previous account, close previous account, and receive in the post, full new account paperwork/booklets each and every time?


I appreciate you may not know yourself, but would hope you can, on my behalf, ask a relevant colleague and feedback their answer here.

Important note re what happened in January

An automatic process, whilst not currently in place, does seem to have been, unexpectedly I admit, put in place (so is perhaps available to be put in place again?), in January of this year. Here is a copy of the message I received by email at the time - "We’re giving you a little something to thank you for being a loyal customer. As the Bank of England base rate recently increased, we’re passing this straight on to you by increasing your Savings Account Standard Rate by the same amount of 0.15% from 11th January 2022 to help you save even more.
What does this mean for me?
Your savings will now increase without you having to do a thing. Keep saving with us and enjoy this little extra - it’s as simple as that."

In other words, without me having to open a new internet saver, close the original one, and receive paperwork/booklets by post, the underlying standard rate, and therefore the standard plus bonus rate, was increased.

Your further reply to this part of my original question would be appreciated, meantime, on a positive note, your reply "in terms of interest" does clarify the situation for that part of my question.

[RobbieT]

Sorry @savermum, but I'm afraid there are currently no plans to introduce this. However, I've added these comments to the feedback raised yesterday. Sorry again for any inconvenience caused.

[LynnW]

@savermum
Agree 100% and the Internet Saver rates have changed twice in July so I will be opening yet another account!!

[GaryB008]

@RobbieT Have the powers that be given you a reason why they won't do this? It seems to be the most sensible option. It can't efficient for thousands of customers to have to open new accounts, with the cost of posting out all the blurb, every time you change rates.

[savermum]

Originally Posted by GaryB008

@RobbieT Have the powers that be given you a reason why they won't do this? It seems to be the most sensible option. It can't efficient for thousands of customers to have to open new accounts, with the cost of posting out all the blurb, every time you change rates.

Good question @GaryB008. I was just coming back myself to ask @RobbieT if they would mind feeding back to us what those he is feeding back to say. Unless, of course, feedback from customers goes into a deep, dark abyss.

I wonder if anyone has made good use of the Freepost envelope that comes with each new deluge of paperwork...

- - - Updated - - -

Originally Posted by LynnW

@savermum
Agree 100% and the Internet Saver rates have changed twice in July so I will be opening yet another account!!

And given today's BoE interest rate hike, no doubt you will be opening more soon too.

[GaryB008]

@RobbieT You seem to have gone quiet on this one. Any updates from those at the top?

[GaryB008]

Another increase in the Tesco rate today, so another needless round of new account openings.

[savermum]

Thanks for the heads-up @GaryB008.

The increase in interest rate is welcome, the hassle in setting up yet another new account, transferring from previous and receiving heaps more paperwork, isn't. We could vote with our feet, but it is a shame some may even start to do this, when it could all be sorted so easily, given that Tesco, earlier this year, managed to increase rates on existing accounts without any action needed by account holders.

As the saying goes....."Every little helps...", except, perhaps, when asking for a little common sense (and goodwill towards loyal customers), from the banking arm of Tesco.

Edited to add, the opening process still asks that opening deposit be made by cheque or by transfer from another bank, and never gives option to make deposit by transfer from an existing Tesco account....something else unhelpful.