Tesco Clubcard Pay Bank Account

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.
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Replies

  • WillPSWillPS Forumite
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    The most notable feature is the 1 point per £8 spent on the debit card away from Tesco.
    Interestingly, after 3 months the earnings rate at Tesco is effectively 0 (you'll get the 1 Clubcard pt per £ everyone gets).
  • Perhaps this will be what all their current accounts will be migrated to?
  • TheCubbyTheCubby Forumite
    12 Posts
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    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.
  • BallardBallard Forumite
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    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.
    I hate verisimilitude.
  • hochoc Forumite
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    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.
  • colstencolsten Forumite
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    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.
  • colsten said:
    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

  • jbrassyjbrassy Forumite
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    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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