Tesco Bank have frozen applications to its 3% current account after a surge of new sign ups in the last week. The pause falls just nine days after the announcement that it will guarantee the rate up until April 2019. The applications were expected, however the supermarket giant struggled to keep up with the ‘unprecedented demand.’
The current account is one of high demand on the market, with clear reason why. Customers are not required to pay in a certain amount of money each month, nor have a certain number of direct debits set up to get the rate.
Applications received before this point will continue to be processed and the freeze is only expected to last a short amount of time.
A spokesperson for Tesco Bank said: ‘Last week we launched our new guarantee for Tesco Bank Current Account customers. It gives our customers certainty on the level of interest their accounts will earn, as well as even more Clubcard points when they shop at Tesco.'
The interest rate announcement is good news for savers – albeit the freeze. Dismal interest rates currently mean savers find it hard to seize an easy access account paying more than 1%. It’s rate and rewards promise ensures comfortable earnings for the next two years at least.
What is worth the switch?
Are you thinking of switching for a higher interest rate? Tesco’s 3% current account stands out for most, however there are other options:
Last updated: Wednesday, 15 February 2017
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