Maybe you think it’s the most convenient, it’s the closest to your house or it has your favourite pasta brand. Whatever the reason, if you shop at Tesco all the time, it may be worth considering its bank account, which comes with a respectable series of benefits. It doubles your Club points every time you spend at Tesco, and also earns you some interest on your balance. Let’s dig deeper to find out if it’s got what you’re looking for.
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Tesco only has one current account option. It’s a reward account that mostly makes sense if you are the person in charge of grocery shopping in your household, and you usually do it at Tesco. It lets you earn 2 points for every £1 you spend (you’d only get 1 point with your regular Clubcard). As usual with Tesco, you can also earn points at its petrol stations, when you buy Tesco-branded clothes and homeware or if you use Tesco Mobile. Tesco Bank’s current account also pays 1% interest on all balances up to £3,000 if you pay in at least £750 a month and also have at least 3 direct debits. There are a number of reward current accounts out there, so if Tesco isn’t your one and only supermarket, don’t forget to take a look at the alternatives as well. Learn more about reward and incentive accounts
The benefits of banking with Tesco Bank
Rewards system. The Tesco Club scheme gives you a £1.50 voucher for every 150 points (so every £75 you spend at Tesco, if you also have a current account) – which is a nice earn rate. You can spend your vouchers in-store or with one of Tesco’s partners.
One card to pay and earn points. Your Tesco Bank debit card will also act as your Clubcard, so you don’t need to carry them both.
Multiple ways to bank. Just like with a big bank, with Tesco you can bank online, on the phone, on your smartphone or in-person at a number of Tesco selected stores.
Mobile banking app. It’s a pretty basic one, but you can check your transactions and make payments. Unfortunately, it doesn’t let you manage your Club points – you’ll need to check your balance or redeem them online.
Global acceptance. Tesco Bank’s debit cards are on the Visa network, so you can use them in millions of stores in the UK and abroad.
Round the clock assistance. Tesco Bank has a 24/7 helpline, so if you need help, for example because you think your card has been stolen, you can always call them – even if it’s 3am.
A wide range of financial products. Tesco Bank also does credit cards, mortgages, loans, savings accounts and insurance. It’s a good choice for people who enjoy the comfort of doing all their money stuff (including buying milk) with the same company.
Opening an account with Tesco Bank
To open an account with Tesco Bank, you’ll have to provide the following information:
How much you expect to pay in each month
Your salary details and any assets you have
Three years of address history
Details of your existing bank account
Your employer’s address
Your residence status/tax residence status
In some cases, proof of identity (passport, driving licence, EEA or Swiss national identity card)
You can open a Tesco Bank account online or by visiting a branch.
Why should I compare current accounts anyway?
Everyone needs a bank account, but not everyone does the same things with their money. The day-to-day banking needs of a father of three that does a lot of grocery shopping will be different from those of a young professional who lives in London with their flatmates. Current accounts are becoming more and more specialised to suit different needs, so it’s worth spending some time looking for one that works for you. Moreover, the current account market is getting more and more competitive, and many banks offer juicy incentives to attract new customers. If you’re unhappy with your current arrangement, look around! Switching may earn you a better service and a nice injection of cash.
What about digital banking?
Challengers like Monzo, Starling and Revolut are all about offering hassle-free current accounts that you can open from your smartphone in a few minutes. Their apps are slick and packed with cool budgeting features that can help you organise your money – but there are no physical branches to go to if you need help. If you’re quite the techie type and this sounds like your thing, you can head to our digital banking section to learn more.
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Valentina Cipriani is a writer at Finder UK. She writes news, features and guides about banking and credit cards, helping people to improve their financial lives. She holds an MA in International Journalism and loves taking complicated topics apart and giving them back to the readers in a clear and easy fashion.
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