Tesco Launch Current Accounts

[EXC]

Tesco have published the details of their current account offering.

It looks very competitive to me and, unlike the major banks, refreshingly straight forward and easy to understand:

• Account charge - free providing you pay in £750 per month, otherwise £5 per month.
• Paid and unpaid item fees - £5 (maximum of 10 paid & unpaid transactions combined per month).
• 3% interest paid on balances up to £3000.
• Arranged and unarranged overdraft interest 18.9%.

[enaid]

Re: Tesco Launch Current Accounts

A few reviews

http://www.reviewcentre.com/reviews230915.html

Suppose it's one to watch maybe lol

[EXC]

Re: Tesco Launch Current Accounts

The competition to win new banking customers is about to intensify, as the UK's largest supermarket launches its first current account.

Some 17 million customers of Tesco will be offered extra shopping discounts if they open an account.

The supermarket is one of four banks offering new current accounts this year.

Marks and Spencer launched its first free account last month, and Virgin Money is expected to follow soon.

TSB - which is being spun out of Lloyds- offered customers a new account at the beginning of April.

The Post Office too is continuing to roll out new current accounts across the UK.

Benny Higgins, the chief executive of Tesco Bank, told the BBC the account was "very transparent".

"Customers tell us they are very tired of the smoke and mirrors and the need to pay attention to the small print. We are setting out to be very clear and transparent," he added.

Discounts Tesco may have reported a 6% fall in annual profits in April, and a further slide in sales last week, but it is already a major force in banking.

Tesco Bank has six million customers, and over 12% of all credit card spending in the UK is on one of the store's cards.

It may now be able to gain further advantage over some its rivals with the lure of extra discounts.

Account holders will be able to earn money off in-store, or when they use their debit cards elsewhere.

By using their Tesco debit card at the till, they will earn one extra Clubcard point (worth at least 1p) for every £4 they spend.

When account holders shop elsewhere, they will also earn one point for every £8 they spend on their cards, equivalent to 0.12p.

Rival Marks and Spencer offers its customers a £100 voucher if they open a current account, plus one point for every £1 spent in-store.
In the red
The Tesco account will be free, providing customers pay in at least £750 a month. Otherwise it will cost £5 a month.

It will also pay customers 3% annual interest on amounts up to £3,000, where interest is reinvested.

There will be no fixed monthly fee for an agreed overdraft, but an 18.9% interest rate.

"This is quite high, given this is a product which is clearly targeted at families who are often on tight household budgets," said Kevin Mountford, head of banking at MoneySuperMarket.

"The lack of an interest free buffer means there may be better offerings for those who slip into the red," he added.

But overall he described the account as a "solid offering".

"In addition, the minimum monthly fee-free funding level of £750 is very competitive, with TSB being the only other provider (sitting within the interest-paying current account sector) to beat it at £500."

The executive director of Which? Richard Lloyd, said the new Tesco account was likely to "appeal to the many customers fed up with shoddy service elsewhere."

But he added that potential customers should weigh up all the options before signing up.

"As always, people should look carefully at how they use their existing current account before deciding if this is the best choice for them," he said.


Now that Tesco has weighed in, maybe the frenzied contest to handle our money, which ministers have been so anxious to see, will finally begin.

The big four, Lloyds, RBS, Barclays and HSBC are sitting on three quarters of the market.

But one City banking expert told me current accounts are becoming a "big battleground", with M&S, Tesco and TSB in the mix and Virgin Money launching this year.

The Tesco account is a good all-rounder. It offers 3% interest and the overdraft charges are attractive.

It's true that you can get even more interest elsewhere and some will be put off by the £5 monthly charge.

But the point is that for 17 million Clubcard members, the promise of earning even more points and banking in the store will be big attractions.

The sheer scale of the Tesco retailing machine could propel it into the front rank, rivalling Santander, Nationwide and TSB in opening new current accounts.

http://www.bbc.co.uk/news/business-27769605

[Guest]

Re: Tesco Launch Current Accounts

I would be interested to see what there criteria is for opening one of these regarding credit checking. Many who have been existing on basic accounts for some time are looking to upgrade to a current account and have not been able to due to a less than perfect credit score.

it would be good to see some of the restrictions relaxed and for people to be able to get back on the ladder who have had problems in the past.