Tesco Bank removes fee on current account. Tesco Bank has today announced that it will remove the £5 monthly fee on its current account for all new and existing customers. The change means that anyone with a Tesco Bank current account will earn 3% AER interest on credit balances up to £3,000, as well as Clubcard points whenever they use their debit card, without having to pay a monthly fee for the account.
David McCreadie, Managing Director of Banking at Tesco Bank said: “We’ve been delighted with the response from customers since we launched our first current account last year. But we always listen to customers so we can improve our products and services. By removing the monthly fee, we believe we are offering customers one of the best value current accounts in the market.”
Tesco Bank current account customers can make deposits at over 300 Tesco stores across the UK, as well as access 24/7 customer support through UK call centres and online and mobile banking. Furthermore, unlike other banks, Tesco Bank does not charge expensive monthly or daily overdraft usage fees.
Additionally, Tesco Bank is the first and only UK bank to show customers ‘foregone interest’ – this is the amount of interest they would have earned if they had transferred their current account balance into an instant access savings account with us. Notes to editors: £5 monthly account fee to be removed on 17th September. Fee was previously paid if customers deposited less than £750 per month. 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.
There is no requirement for customers to set up Direct Debits on their account in order to earn credit interest. Customers using an overdraft pay a simple interest rate of 18.9% variable EAR. There are no monthly or daily overdraft usage fees. Clubcard points are collected whenever customers use their debit card. 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 the current account (such as standing orders and Direct Debits), in-store cash or cheque deposits, refunds and using the debit card to pay bills at banks or other financial institutions. Points are also not collected on cashback, in-store cash withdrawals, ATM cash withdrawals, gambling, purchasing travel money and wire transfers.