Tesco want your current account

10 June 2014

tesco bag There's good money to be made if you have everyone's current account, especially if you're the kind of bank that lets anyone have an overdraft, because you can rinse them for charges.

Tesco, a company that likes making money, is now launching their first current account.

Around 17 million Tesco customers will be offered bonus shopping discounts if they open an account. If you have a Clubcard too, Tesco will know what you're buying with them AND they'll know where you're spending your money elsewhere.

You may as well give them your fingerprints while you're at it.

They're not the only supermarket joining the current account carnival. Marks and Spencer launched an account last month. TSB, Virgin Money and The Post Office are all offering new current accounts  too.

With the Tesco account, you'll get 3% interest and, with your overdraft, there'll be no fixed monthly fee, but an 18.9% interest rate. There's a £5 monthly charge, which will put a good number of you off (the account will be free if you promise to put at least £750 in per month). You'll also get one extra Clubcard point if you spend £4 with a Tesco debit card at a Tesco till, while getting Clubcard points if you use it at other shops.

Benny Higgins, the chief executive of Tesco Bank, says: "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."

As for an onslaught of new customers, he continued: "I don't think it's likely that it's an impulse buy and that we would have high levels of switching overnight. But I hope, in time, this will become a very good product for very many Tesco customers and beyond."

Now, hands up if you fancy doing all your banking with Tesco.

TOPICS:   Banking

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