If you’ve opened a Tesco Internet Saver account this year, chances are it’s been a nightmare…
Back in January I decided it was time to reassess my savings. As I was being paid a pittance in interest on my Halifax account, I made the decision to switch savings accounts.
I didn't want to lock up my money for any period of time, so knew an instant access savings account was the best option for me. So after shopping around, I plumped for the Tesco Internet Saver account.
And why? Well, it was offering a very tasty interest rate of 6% AER (variable) which included a 1.5% bonus rate for one year - and I managed to apply just before the bonus was scrapped.
But my decision was also swayed by the following three things:
- I would have instant access to my funds and there were no restrictions on the number of withdrawals I could make
- I could open the account with just £1
- The account would be online so I could access the account 24 hours a day, seven days a week - so I could check my balance, set up payments and transfer money.
Oh, and before I forget, according to the Tesco Personal Finance website, the account was also 'quick and easy to apply'.
Problem one - opening the account
Clearly with an account sounding this attractive in the current market, it was always going to be popular. And I know many lovemoney.com readers joined me in signing up for the account.
Admittedly, the Tesco Personal Finance website did warn customers there would be a delay opening the account because of the sheer volume of new applicants. However, I was assured I would still get my bonus, even though the bonus rate had been abolished by the time my application was processed. And Tesco has kept its word.
But in my opinion, the whole registration process was a nightmare and unnecessarily complicated. As I'm sure many of you know, you need a registration number and a customer number, and then you need to send off a signature, a cheque, and all sorts of other things. I'm not exactly sure why, but the whole process just seemed to take forever.
And once I had finally completed my registration, it still wouldn't log me on - I must have forgotten my password or something - and I had to start the entire registration process from scratch.
By this time I really was starting to tear my hair out (honestly, you should see it - it's much thinner than it was at the start of the year).
Anyway, just over a month after I had applied for the account, it was finally open and I successfully transferred some money into the account. I breathed a sigh of relief. It was finally sorted, or so I thought....
Problem two - the card reader
We've had complaints from several lovemoney.com readers about this next issue and I really do sympathise! Oh yes, having finally managed to put money into the account, many Tesco Internet Saver customers, including myself, are now trying to get over the hurdle of taking money out of the account.
Now I just want to remind you here that this account is supposed to be accessible 24 hours a day, seven days a week. So imagine my horror when I logged onto my account to discover I needed to order what's known as a 'card reader' to withdraw my funds.
Ok, it might not sound so bad - but I, like many other Tesco Internet Saver customers, have been waiting approximately two months for this device now. Although the card and PIN which are used in conjunction with the card reader have arrived, there's still no sign of the reader itself.
This card reader is a calculator-style device that's supposed to make your account extra secure - but surely it's not supposed to make it so secure that even the ACCOUNT HOLDER can't access the funds?
For several weeks now, the Tesco Personal Finance website has apologised about the delay, but there's been no indication of how much longer customers will have to wait.
So I, like many other customers, feel extremely frustrated right now. After all, in a climate where nothing is certain, being able to access your funds in case of an emergency is a top priority. And if you've opened up a new savings account believing you can access your money whenever you want, only to find you can't - well, quite frankly it's just not on.
Why the wait?
I've spoken to Tesco about this to find out what's going on. But it's as I expected - it's simply all been down to 'unprecedented demand' for the account.
Tesco claims it has 'significantly increased' its account handling resources and made customers aware from the start that there would be a delay in processing applications. Even so, there's no mention of the fact that once your application is processed you'll have to wait even longer for your card reader (at least not until your account is activated anyway).
On a slightly more positive note, I have been assured by a customer service representative that a new batch of card readers is on its way and should be in customers' hands by the middle of April - but let's face it, that's still a few weeks away.
However, if you do need to access your cash in the meantime, you can transfer money over the phone. Admittedly this is going to require some patience as you'll need to call up the Tesco personal finance helpline and you may have to wait.. and wait... and wait on hold. But do keep trying - I gave up on my first call after waiting for ten minutes, but I got through immediately on my second attempt.
That said, the helpline is only open 8am to 10pm Monday to Friday and 9am to 5pm Saturday and Sunday - so not the 24 hour service we were expecting. And of course, you'll be charged for the call.
Overall, I'm sure I'm not alone when I say that if I had my time again, I wouldn't be turning to Tesco to look after my savings. I think this has been a highly frustrating experience for many people. Let's just hope we will all be hearing the thump of a card reader on our doormats very soon.
If you've been affected by this, post your comments in the boxes below.