Here you can find the latest news releases from Tesco Bank.
If you're a journalist and would like more information about Tesco Bank or have some questions please get in touch.
The information in this section is designed to provide journalists and bloggers with the latest news from Tesco Bank. If you are a customer looking for information on the products and services we offer, please visit our customer website.
10 June, 2014
Tesco Bank launches first current account
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.”
- End -
For more information and media enquires please contact:
Michael Strachan (Tesco Bank)
+44 (0) 7826 556556
Adam Treslove (Tesco Bank)
+44 (0) 7713 068642
Paul Farrow (Fishburn)
+44 (0) 7530 269946
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 provides credit cards, loans, mortgages, savings and general insurance products to 6 million customers. We aim to be the bank for Tesco customers by rewarding their loyalty and earning their trust. We opened for business in 1997 and since 2008 have been owned by Tesco plc. We now have approximately 4,300 colleagues based in Edinburgh, Glasgow and Newcastle, serving more than 7 million customer accounts. Tesco Bank’s products and services are available online and via our UK customer call centres, seven days a week. Last year we gave more than £120 million in Clubcard points to Tesco Bank customers.
Rewarding customer loyalty
- Customers will receive an additional Clubcard point for every £4 spent in Tesco using their Visa Debit card, and one point for every £8 spent outside Tesco.
- Furthermore customers will receive 3% AER interest on all credit balances up to £3,000.
- All customers will receive these benefits automatically. There is no requirement to transfer direct debits or register online.
- Furthermore, the contactless Visa debit card doubles as a Clubcard, meaning customers automatically benefit from other Tesco rewards, including Clubcard Fuel Save.
There for customers wherever, whenever they need us
- Online and mobile banking – with a new mobile banking app that lets customers transfer funds, download statements, and keep track of transactions.
- 24/7 customer support at our UK based call-centres.
- The ability to make deposits at over 300 Tesco stores across the UK, from Lerwick to Penzance.
Simple, fair and transparent charges
- No monthly fee for customers who deposit more than £750 per month. £5 monthly fee if customers deposit less than £750 per month.
- For customers who use an arranged overdraft facility there is no fixed monthly fee, instead customers will pay a simple interest rate of 18.9% variable EAR. This means customers will only pay for what they use.
- Furthermore, Tesco Bank is making a commitment to transparency by being the first bank to show customers annually what their money could have earned if they had moved non credit earning deposits to a Tesco Bank savings account.
- Tesco Bank also provides an online calculator to let customers clearly see the interest they will pay for using their arranged overdraft.
- A set £5 fee for payments made using an unarranged overdraft or if we reject a payment. This only covers the costs incurred by the Bank – meaning Tesco Bank makes no profit from these transaction fees.
- To help avoid charges, customers will automatically receive a text message and email to tell them to pay in funds and they will not be charged if they make a sufficient deposit or transfer before 5.00pm on that day.
Stay updated with our press releases by registering for our RSS feed or email alerts.
For journalist enquiries only, contact the Tesco Bank Press Office on:
+44 (0)131 274 3630
+44 (0)7595 441 036