[GaryB008]

This is getting really silly now. I've had to open three new accounts in the last month due to Tesco's policy of not applying interest rate rises to existing accounts. I've just noticed that the Internet Saver rate has gone up from 2.06% to 2.21%. The increases are welcome, but this means I have to open yet another account. I only received the paperwork for the last new account two days ago.

Tesco guys, can you get the powers that be to look into this ASAP.

[RobbieT]

Hi @GaryB008, thanks for getting in touch. I'm afraid the interest rate on your Savings Account doesn't automatically increase when our rates improve. This is because the account has a fixed bonus which cannot be changed. To benefit from the better rate, you would need to apply for a new Savings Account and transfer the funds across from your existing account. I'm sorry for any inconvenience this causes. I've passed on your comments as feedback today.

[GaryB008]

Even if the fixed bonus can't be changed, there is presumably nothing to stop you changing the variable, non-fixed part of the rate. There was one interest rate increase recently where that happened, so it is obviously possible. I assume the powers that be do it to avoid paying the higher rates, but it's a complete pain for your customers. I've so far had to open eight savings accounts, which will soon be nine with your latest rate rise. I have given in now and opened a new Santander account. I will be moving over £100k to that, partly because of this PITA policy, and partly because they are paying 2.75%, but most importantly, the rate will automatically follow the base rate, without all this messing about.