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Doing my online grocery shop on the Tesco app I saw an advert for this at the bottom. Definitely looks like a silent launch from them but double club card points for three months definitely sounds like a bonus. They seem to want it to act like a Spending Account only though so no DD, SO or Wages paid in.
It also comes with a “Round Up” account too that works similar to Monzo’s offering where it rounds your purchase up to the nearest £ but has an interest rate of 0.10% with it too. Looks like they’re definitely trying to encourage saving as you shop. Reading the FAQ though it looks like you can turn it off if you don’t want it though.
I use my Tesco debit card to pay for things where Amex isn't accepted and get the one point for each £8 spend but since Avios stopped being offered there's nothing in their offering that stands out to me. I'll continue to collect in the hope that they do start to offer something that I find more attractive for their points before they start to expire.
Perhaps they will migrate their current accounts to this. I have to say that I can't get excited by it though.
If Tesco were to quit current accounts as this forum hypothesises daily and people cared enough about collecting clubcard points on spend to continue being a Tesco finance customer they would just get a Tesco credit card. All this product offers is the same points but without the benefits of being a credit card. I can't see the point of this unless you struggle to get their credit card.
I'm not sure why there is a doubt over Tesco's intention for the Current Accounts market, they have closed the account to new customers and indicated it will not be reopened. This account is clearly a trimmed down version of the same thing, losing many of the features which would make it a Current Account, but (presumably) keeping the bit which was most beneficial to them longer term (insights in to spending habits outside Tesco, incentivised by Clubcard points).
I doubt it is meant to be a replacement for the Tesco current accounts, as it offers neither SOs nor DDs. Not even sure it offers Faster Payments.
If it is designed to be a replacement for anything, the Tesco credit card would be a more likely candidate.
I'd strongly hazard a guess that many of their legacy current account holders are using them for spending only accounts to get points and not full payment accounts. This would allow them to retain much of the customer base whilst closing down the product
It looks to me like the card functions more like a prepaid card rather than a current account/debit card. Prepaid cards come with more light-touch regulation than current accounts (they are regulated as e-money). Tesco probably want to remain providing financial services while not having the burden on their balance sheet of traditional banking services.
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Perhaps they will migrate their current accounts to this. I have to say that I can't get excited by it though.
If it is designed to be a replacement for anything, the Tesco credit card would be a more likely candidate.