Tesco current account to launch TODAY – what do we know about Avios earning?

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

Tesco Bank is due to launch its current account today.

We don’t know everything about the account yet. In particular, we don’t know what incentives there will be for signing up.

Marks & Spencer is currently offering a £100 voucher for opening a current account with them. If Tesco offered the equivalent of 10,000 Clubcard points then it would look very interesting. However, my understanding is that there will be no major offer at launch.

Tesco current account

This is what we know:

The account will be free if you pay in £750 per month ….

…. and will cost £5 per month if you don’t.

You will earn 3% interest on balances up to £3,000 and nothing above that

You will earn Clubcard points on all of your debit card transactions:

1 point per £4 spent in Tesco

1 point per £8 spent elsewhere (VERY interesting)

Is there going to be ‘small print’ attached to the ‘1 point per £8 spent elsewhere’ rule?

How to earn Avios points from UK credit cards

How to earn Avios from UK credit cards (December 2021)

As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways BA Amex American Express card

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus:

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.

(Want to earn more Avios? Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)

Category

Tesco Clubcard

This article is closed to new posts. Discussion continues in the HfP Forums.

Fenny says:

10 Jun10 June 08:07

Very poor offering. I’ll stick to my Santander 123 account.
Rob says:

10 Jun10 June 08:22

Wonder if the Inland Revenue is treated as a ‘bank or other financial institution’?
- NJ says:
  
  10 Jun10 June 10:40
  
  If it isn’t then NS&I should also work
- Polly says:
  
  10 Jun10 June 10:48
  
  Shouldn’t be, we have paid our tax bill with debit cards before!
  - Brendan says:
    
    10 Jun10 June 11:22
    
    Paying isn’t the problem, getting CC points for the payment is…
CV says:

10 Jun10 June 08:45

Completely underwhelming, I thought they would at least match the First Direct £100 for new accounts. I expect they will launch new products in the future, will keep waiting till then.
- nick says:
  
  10 Jun10 June 08:56
  
  First direct customer service is excellent and they have excellent products. Tesco customer service is… Well, it’s tesco. Terrible. Unless my mortgage payment qualifies for the clubcard points, there is nothing to look at here. Santander, Halifax and first direct all have significantly better products on the market already.
ts77 says:

10 Jun10 June 08:57

Looks pointless to me – I’m shocked there is no fanfare and promotions to get people to sign up.

I’ll stick with the Nationwide Flexplus and the old Tesco / Amex credit cards.
mrtibbs1999 says:

10 Jun10 June 09:09

So if a person had access to a merchant terminal that charged 25p a time for debit cards and sent £10k at a time what would happen?
- Colin MacKinnon says:
  
  10 Jun10 June 10:05
  
  They’d suspend/close your account !
  
  Money laundering regulations mean they are obliged to look for any suspicious transactions, and while yours would be perfectly legal, they would raise the flag.
  
  So even though they were looking for money laundering – which you wouldn’t be doing – they’d thus find you “exploiting” the T&Cs,, which is what we are all seeking to do!
  - Leo says:
    
    10 Jun10 June 10:13
    
    Well, is this really illegal? if 10K is suspicious, several 1K transactions should be reasonable, isn’t it?
- xcalx says:
  
  10 Jun10 June 10:06
  
  I would ask that person to be my new best friend 😉
mrtibbs1999 says:

10 Jun10 June 09:11

Or if you paypaled it to a relative/friend at 0 cost?
- Nick says:
  
  10 Jun10 June 10:34
  
  Is that even possible? I thought all paypal transactions incurred a fee somewhere
- Brendan says:
  
  10 Jun10 June 11:32
  
  Paypal are very strict on transactions like that and will suspend your account if they suspect money laundering
- DJA says:
  
  10 Jun10 June 13:26
  
  As above, a credit/debit card payment will incur a 3.4% + 20p fee (if it hasn’t changed) either sender of recipient needs to pay it.
squills says:

10 Jun10 June 09:54

There might be a few little holes to exploit 😉
- mrtibbs1999 says:
  
  10 Jun10 June 09:56
  
  Reply some more over at PTS… 😉
  - squills says:
    
    10 Jun10 June 11:31
    
    They forgot to unban me after my 2 weeks in clink for having a mild go at Dom 😉
    - mrtibbs1999 says:
      
      10 Jun10 June 12:34
      
      Get new name lol
      - Chris says:
        
        10 Jun10 June 13:54
        
        Forgive me for being dumb, what’s PTS?
      - Rob says:
        
        10 Jun10 June 14:19
        
        paidtoshop.co.uk – like Flyertalk for shopping deals!
        
        Note that they restrict access to some parts of it for new joiners.
JK says:

10 Jun10 June 09:58

Just feels a little bit like too much hard work for a minute pay-off… I think the free credit card makes more sense. Unless I’m missing any of the loopholes, at present, it seems not worthwhile!