This comparison simply includes all savings accounts.
Tesco Current Account
Why we like it: 5.00% interest for 12 months on balances up to £2,500 for the first year. You must pay in £1,000 or more each month to receive interest (excluding transfers from any Nationwide account held by you or anyone else). 12 month fee-free arranged overdraft available. No monthly fee. Access to Flexclusives - Select Credit Card and low personal loan rate. 3.0% APR Representative. Must be aged 18 or older
Why we like it: Earn 1.50% AER (variable) interest on balances up to a maximum of £20,000. Up to 3% CASHBACK on various household bills. Monthly fee of £5. Must pay in £500 pm.
Why we like it: 0.50% AER (variable) payable on your entire balance up to £2,000. Linked to instant access savings account currently paying 1.00% AER, paid quarterly. Zero transaction fees wherever you spend worldwide (arranged and un-arranged lending, other providers & other fees and interest may still apply). Apple Pay & Google Pay enabled contactless debit card. Rated ‘outstanding’ by Moneyfacts. Must be 18 or older and a UK resident. No account fee. No minimum funding required to open account or requirement to pay in regularly
Why we like it: UK & Europe Breakdown Cover, Worldwide family travel and mobile phone insurance, and commission-free cash withdrawals and card payments abroad. Free mobile banking app, text alerts and secure online banking. Access to Flexclusives - Select Credit Card and low personal loan rate. £13 monthly account fee
Why we like it: Everyday current accout. No monthly account fee. Access to Flexclusives - Select Credit Card and low personal loan rate. 3.0% APR Representative (terms and conditions apply)
Tesco Current Account
Tesco offer some great rewards with their current account, particularly if you regularly shop in their stores. This is because your debit card also serves as your Tesco Clubcard and you earn 5 points for every £4 spent in Tesco and 1 point for every £8 everywhere else. You can also collect Clubcard points on fuel.
Another bonus of the current account is that they do not charge monthly fees for the account or for arranging an overdraft. This is a big saver on a lot of other current accounts especially as Tesco also pays 3% interest on amounts up to £3000.
Tesco offer, as standard:
- An easy way to manage your money anywhere with a mobile app and online banking
- Customer service with a UK based team who are available to talk 24/7
- An opportunity to earn credit interest with no monthly fee
- Free text and email alerts to avoid any fees and charges
- Overdraft control to avoid slipping in to an unarranged overdraft
- The app also includes a payment calendar so you can easily keep track of payments going in and out
- A contactless card for quick purchases up to £30
- Joint account facilities available as well as multiple current accounts in your name
- An opportunity to deposit and withdraw money at over 300 Tesco stores in the UK
- Make payments internationally and use your card abroad exactly like at home
- Replacement of lost or damaged debit cards. The first two in a year are free and £10 thereafter.
They were also the 2015 winner of the Moneynet award for the ‘Best All Round Current Account’.
Your Clubcard voucher rewards:
After earning your points, every 3 months, your Clubcard points will be turned into vouchers. You will then be able to spend the vouchers at tesco.com, in store or on Tesco Fuel. You can also increase the value of the vouchers by boosting them with one of their Boost partners, UK retailers with whom Tesco have a partnership.
Useful to Know
Arranged overdrafts are charged interest at 18.90% EAR. You’ll be able to borrow up to an approved limit without any additional fees, you’ll just pay daily interest on the amount you’ve used.
If you fall in to an unarranged overdraft then you are charged fees and interest on the extra amount. Their Overdraft Control setting on your account, which allows you to decide whether a payment is made when you don't have enough money in your account to cover it, should help you avoid charges.
Overall this is a great account where you can earn some great rewards with the Clubcard scheme providing you take advantage of shopping in their stores. It’s also one of the few basic current accounts that do pay interest. The interest rate is high at 3.00% AER/2.96% Gross (variable) for balances up to £3,000. The interest is paid monthly.