Quantcast
Menu
Save, make, understand money

News

Tesco Bank launches new current account with Clubcard points on all spending

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
05/12/2014

Tesco Bank has launched its first current account giving customers Clubcard points wherever they use their debit card.

Account holders will receive one Clubcard point for every £4 of debit card spend in store and every £8 elsewhere.

A £5 monthly fee applies to customers who deposit less than £750 per month but the account is fee-free for anyone depositing more than this amount.

Customers who use an arranged overdraft facility will pay an interest rate of 18.9% variable AER. A set £5 fee will apply to payments made using an unarranged overdraft.

The account pays an interest rate of 3% AER on credit balances up to £3,000 and customers will be able to make deposits at over 300 Tesco stores.

Benny Higgins, chief executive officer of Tesco Bank said: “In designing our current account we have listened to more than 20,000 customers to understand what they want. And the account we are launching today offers all the features they told us mattered most. There are no gimmicks; – just a simple, rewarding, modern, convenient current account, designed for Tesco customers, by Tesco customers.”

Tesco is the latest challenger bank to enter the current account market, threatening the dominance of the major high street lenders.

Last month, M&S Bank unveiled its fee-free offering giving account holders reward points to spend in M&S stores.

Customers can apply to open a Tesco account online from Tuesday 10 June. Tesco Bank is a member of the Payments Council’s 7-day switching guarantee service.