You are here: Home - Credit Cards & Loans - News -

Tandem Bank unveils £6 monthly charge on its cashback credit card

Written by:
Tandem Bank is introducing a £5.99 monthly charge on its currently free cashback credit card.

The digital challenger launched its cashback credit card in February 2018, offering a generous 0.5% cashback on both UK and overseas spends, plus no foreign transaction fees.

Customers received an email today inviting them to sign up to a new membership scheme, launching on 9 March. If they opt out, their cards will stop working.

For £5.99 a month, customers will benefit from 0.5% cashback and no foreign transaction fees. They will also have access to the Tandem Instant Access Savings Account, which pays a market-leading 1.5% AER.

Credit card customers who open the savings account before 9 March will receive a rate of 0.5% before it increases to 1.5%. There’s no minimum deposit, but the maximum amount you can save is £250,000.

The new membership scheme will run on a trial basis for existing customers and could be rolled out to new customers at a later date.

Tandem Bank took its popular cashback credit card off the market last month as it looked to finalise details of its new paid for membership scheme.

Tandem co-founder and CEO Ricky Knox, said “We want to continue to offer products and services that make a real difference to our customers, but we also need that offer to be sustainable. That’s why we’re taking the opportunity to test a membership model that preserves all of the benefits of the cashback card and more.”

How good is the Tandem Bank membership?

Andrew Hagger, personal finance expert of Moneycomms, said: “I’m not sure how many people will be keen to pay £5.99 per month for this – you can get 1.35% on instant access savings with Ford Money and Marcus, you can get a Halifax clarity card with no fees abroad or maybe a Starling Bank debit card without a monthly fee.

“It would take a £1,200 monthly spend just to cover the account fee based on the 0.5% cashback rate.

“The Santander all in one credit card offers 26 months at 0% on purchases plus 0.5% cashback for a monthly fee of just £3. Or the Amex everyday platinum cashback card has no fee but pays 0.5% on the first £5,000 spend per year and 1% after that.

“It’s a strange combination of offers mixing savings and credit within the same package. I’m not convinced that it’s that appealing.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week