Another little help for Tesco Bank customers
2 February 2017
- Giving Current Account customers certainty with a guaranteed 3% interest rate
- And rewarding customers with even more Tesco Clubcard points
Tesco Bank current account customers are to receive a guaranteed 3% credit interest on balances up to £3,000 from 1st April 2017 until 1st April 2019. As an extra little help, current account customers will receive even more Clubcard points for every £1 spent in Tesco, helping customers to earn benefits worth up to an estimated £1581 per year with no monthly fee. By making this guarantee, Tesco Bank current account customers will benefit from one of the most competitive and rewarding accounts currently available.
Benny Higgins, Tesco Bank Chief Executive Officer, commented:
“We recognise that we live in a time of uncertainty, where our customers are working hard to get as much value as possible from their money, and so we are taking a step that demonstrates we put our customers first.
“Too often banks focus on new deals for new customers, with little consideration for rewarding existing customers. At Tesco, our focus is providing great value products for all of our customers.
“With our unique guarantee, we are offering Tesco customers peace of mind that they will make a return on their hard earned money, as well as rewarding them for their loyalty by giving them a bigger thank you when shopping in Tesco.
“We are proud to put our customers first.”
By making this guarantee, existing Tesco Bank current account customers who regularly shop at Tesco for their food, fuel and family essentials can look forward to earning benefits up to the value of £3161 over the next two years.
Andrew Hagger, Independent Personal Finance Expert, Moneycomms, said:
“This positive move will be welcomed by customers seeking a decent return on their current account credit balances as it's been a dismal few months, with many of the previous best buy in-credit and reward deals being slashed.
“Many customers were probably anticipating a similar rate reduction from Tesco Bank but refreshingly it's gone against the grain and given consumers some much needed reassurance and certainty.
“Credit interest at 3% guaranteed for two years with instant access is an attractive deal in a depressed savings market where you currently have to lock your cash away for a minimum of 5 years just to earn a best buy 2.05% rate.
“Official current account switching numbers have remained sluggish as consumers often don't know whether it's worth moving banks if rates are going to be cut within a short while of them moving - so this two year guarantee could be enough to sway a good number of those currently sitting on the fence.”
Ricky Willis, Founder and Editor of Skint Dad, commented:
“Rewarding Tesco current account holders with even more Clubcard points will make a real difference to families up and down the country.
“When it comes to cashing in the Clubcard points, Tesco Bank customers can take even further advantage by redeeming them with Tesco Clubcard Partners. And while the days of brand loyalty may have disappeared; in this instance it certainly does pays to be loyal."
1Tesco Bank current account customers could receive the following annual benefit:
|3% Credit Interest||£88:||Based on a customer earning 3% AER gross variable interest if they keep £3,000 in their account for 12 months.|
|Clubcard point voucher value||£70:||Based on average qualifying debit card spend of £1000 per month inc. £250 spent in Tesco.|
Tesco customers who spend their Clubcard vouchers with Tesco Clubcard Partners get increased rewards. For example, used with Goldsmiths gives customers 3x the value of their vouchers.
The key features include:
Rewarding customer loyalty
- A minimum 3% AER variable interest on credit balances up to £3,000 from 1st April 2017 until 1st April 2019
- 1 Clubcard point per £1 spent at Tesco on your debit card from 1st April 2017 until 1stApril 2019. This is in addition to collecting standard Clubcard points when shopping at Tesco and 1 Clubcard point is collected per £8 spent outside of Tesco.
There for customers, whenever they need us
- Access to Tesco Bank’s award-winning mobile banking services and 24/7 customer support
- The ability to make deposits at over 300 Tesco stores across the UK, from Lerwick to Penzance
Simple and transparent
- Automatic text and email alerts to help customers avoid unarranged overdraft fees
- Free ‘overdraft control’ feature to make managing the account easier
- Transparent overdraft fees
Customers can apply to open an account online at (www.tescobank.com/current-accounts/) with 24/7 support available from Tesco Bank’s UK-based call centres. All Tesco Bank current account customers will collect the additional Clubcard points when shopping in Tesco from 1st April 2017. Switching your current account is simple and hassle free, Tesco Bank is a member of the 7-day switching guarantee service.
For more information and media enquiries please contact:
Tesco Bank press office
+44 (0) 131 274 3630
Notes to Editors:
1 As the Tesco debit card is also your Tesco Clubcard, you’ll also collect normal clubcard points, in addition you will collect 1 Clubcard point per £1 spent in Tesco between 1 April and 1 April 2019.
This is an increase from the current 1 point for every £4 spent.
2 Table shows potential value customers can earn with the Tesco Bank Current Account over the first 12 months.
3%AER/2.96% Gross variable credit interest on balances up to £3,000 guaranteed from 1st April 2017 to 1st April 2019. Interest paid monthly. Although this rate is variable it will not drop below 3% AER during the dates shown. This product is subject to availability and may be withdrawn to new customers at any time
Exclusions apply. Clubcard earn rates are subject to change. There are some products at Tesco you can’t collect points on, see the Tesco Clubcard website for details. This product is subject to availability and may be withdrawn at any time. The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, who are responsible for fulfilling points.
The Tesco Bank Current Account is available to people aged 18 or over. Accounts are subject to status.