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When banks in the UK have offered 3% (Tesco bank did this) it was for the first 12 months and the number of new accounts was eventually limited. from what I un
by thisone 8y ago
When banks in the UK have offered 3% (Tesco bank did this) it was for the first 12 months and the number of new accounts was eventually limited.
from what I understand Tesco bank had purchased bonds/securities/whatevs with a 5% interest rate, so made 2% off the deal. (and a slew of new customers worth x each to the bank)
Hopefully something similar is funding this
- notahacker 8y agoSantander offered 3% up to £20k to all customers on their main checking account but had to cut that rate in the end.
- C1sc0cat 8y agoThey had some sweet deals I was making just under £20 a month on cash back plus a good (for the time) interest rate. But the half baked eu ruling on merchant fees screwed savvy investors and the banks found another way to charge merchants.
- benj111 8y agoTesco's 3% is ongoing, it is limited to £1500 though, I've had one for 5? Years. Was only guaranteed for 12 months, and guaranteed it again when they had their security breach a few years back. They have limited account opening at various times though.
- nimish 8y ago3% in the UK on GBP is different from 3% in the US on USD. You can't really compare them.
- thisone 8y ago3% is 3%. 3% on £100 = £3. 3% on $100 = $3. If both banks invest in whatevs (local currency) paying 5%, then they get 5%, pay you 3% and make 2%. Are you trying to reference relative inflation? Or something about the USD makes it difficult to invest?