Tesco Bank launches first current account
10 June 2014
Tesco Bank is today launching its first current account. The account has been designed after listening to more than 20,000 customers, and includes all the key features that matter most to them.
Tesco Bank has been wholly owned by Tesco since December 2008 and now serves 6 million customers in the UK. The launch of the current account means that Tesco Bank now offers a full range of retail banking and insurance products.
Independent consumer finance websites, Defaqto and Moneyfacts, have both given the current account a ‘5 star’ rating. The key features include:
Rewards for customers when they spend, and rewards for customers when they don’t
- Clubcard points on debit card spend wherever you use your card – both in and out of Tesco
- 3% AER variable interest on credit balances up to £3,000
Modern and convenient
- A mobile banking app with innovative features that helps customers manage their money everyday
- Online banking
- ‘Contactless’ Visa Debit card which doubles as a Clubcard
- UK based customer service centres open 24 hours a day, seven days a week
- The ability to make deposits at over 300 Tesco stores
- Simple and transparent fees and charges
- £5 monthly fee if customers deposit less than £750 per month. No monthly fee for customers who deposit more than £750 per month
- Free ‘overdraft control’ feature to make managing the account easier
- Automatic text and email alerts and extended grace period to help customers avoid unarranged transactions fees
Customers can apply to open an account online from Tuesday 10th June (www.tescobank.com/current-accounts/) with 24/7 support available from Tesco Bank’s UK based call centres. To ensure switching is simple and hassle free, Tesco Bank is a member of the Payments Council’s 7-day switching guarantee service.
Benny Higgins, Chief Executive Officer, Tesco Bank, commented,
“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.”
Philip Clarke, Chief Executive Officer, Tesco, commented,
“Customers have told us that in banking they want Tesco to deliver in the same way we do for millions of customers across the UK every day. They want us to focus on what we do best – offering customers quality products they can trust, providing great service, making things simple and transparent and rewarding them for their loyalty. We’ve taken all these ingredients and used them to help create our first Tesco Bank current account.”
Sylvia Waycott, Editor, Moneyfacts, commented,
“At last a current account that plays fair regardless of whether you are in credit or overdrawn, which is great news as many of us fall into both categories from time to time.”
Andrew Hagger, Moneycomms.co.uk, commented,
“Increased banking activity in 2014 means customers now have a wider choice of current account options and those looking for long term rewards and credit interest returns will no doubt be attracted to the Tesco Bank proposition.
It's also good to see that Tesco hasn't gone down the route of charging daily fees for overdrafts as this can prove an expensive style of tariff, particularly for those only in the red by two or three hundred pounds.
With 7 day switching well and truly bedded in, there's no longer an excuse to stick with your bank if it doesn't deliver and that's something that Tesco Bank and fellow challengers are looking to exploit.”
For more information and media enquiries please contact:
Tesco Bank press office
+44 (0) 131 274 3630
Notes to editors:
- 1 Clubcard point awarded per £4 spent in each purchase transaction (£4 minimum) within Tesco. 1 point awarded per £8 spent in each purchase transaction (£8 minimum) outside of Tesco. Exclusions apply.
- The Clubcard scheme is administered by Tesco Stores who are responsible for fulfilling points.
- Clubcard points are not collected on non-card purchases. These include payments from your current account (such as standing orders and Direct Debits), in store cash or cheque deposits, refunds and when you use your debit card to pay for bills at banks or other financial institutions. You also can’t collect Clubcard points when you use your card to get cash. This includes cashback, in store cash withdrawals, withdrawing cash at a cash machine, gambling, purchasing travel money and wire transfers
- 3% AER/2.96% Gross variable credit interest on balances up to £3,000. Interest paid monthly. Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year. Gross is the interest rate paid before tax is deducted.
- Available to residents of England, Wales and Scotland aged 18 and over. Subject to status
- Tesco Bank is part of the Current Account Switching Service
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Our 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ