Are you planning a move? Get up to £ 130 in cash
Now is a good time for anyone who needs to switch, as there are currently seven providers offering incentives for those who switch to one of their accounts. Here are two of the best available:
– Free £ 130 in cash for new customers plus Knack service. First Direct * is currently offering new customers who switch to their first account £ 130 free. You also get access to a linked regular saver who pays 1% AER variable up to £ 300 / month, and many can get an interest-free overdraft of £ 250.
How to get it: Apply by Monday 22 November, then within 90 days of opening, switch and pay with over £ 1,000. The bonus will then be paid out within 28 days. To qualify as a newcomer, you must not yet have a First Direct account or have not opened a current account with HSBC since January 2018.
– Free £ 130 cash for new and existing customers, plus 1% to 3% cashback on most bills for a fee of £ 2 per month. The Santander 123 Lite * is currently offering exchange players a bonus of £ 130 plus a 3% water refund; 2% on energy and 1% on Santander mortgages, council tax, cellular, telephone, broadband and pay TV if you pay by direct debit and use digital banking. Cashback is capped at £ 5 per month (maximum £ 15 per month).
How to get it: Switch to a new or existing account by Thursday, December 2nd, 11:59 pm (existing account must be created in the branch), then within 60 days: If you have 2+ direct debits, deposit in £ 1,000 + and use the mobile app. The bonus will be paid out within 90 days of opening the account. To qualify, this must be your first switching bonus from Santander and you cannot switch accounts from Santander, Cahoot, or Cater Allen.
Check out our guide to the best bank accounts for all the info and more options, including the top accounts if you’re overdrawn.
What to look for when closing your account, including what happens to your Clubcard points
The Tesco Bank website has full information on how account closures work, but there are a few key points to look out for:
- If you do NOT have a separate Clubcard, you will need to apply for one in order to continue collecting points. With the Tesco checking account, customers can collect additional Clubcard points while shopping – you get two points for every £ 1 you spend online and in-store at Tesco, double what you would normally get with a Clubcard alone. You also get one Clubcard Point for every £ 8 you spend elsewhere.
However, once the accounts are closed at the end of that month, your existing debit card will no longer work. If you don’t have a separate club card, after your account is closed you can call 0800 591 688 to request one. This will then be booked out to you with the points you have already transferred.
However, as the replacement is a standard Clubcard, any new points you collect will be charged at the normal rate: one for every £ 1 spent on Tesco and no other points. Below is more information about your options for increasing this.
- If you have a separate Clubcard, you can use it as usual. If you already have a separate Clubcard in addition to your debit card, these will be linked so that you can continue to use the Clubcard account as usual, including the points you have collected via the current account.
- Your online statements will no longer be available after your account has been closed. So print out or download any required bank statements. However, you can reclaim your transaction history for up to five years after the account has been closed.
- If you have a Tesco Fixed Rate Saver and its checking account, you will need to designate a new account for the interest deposit. Savings accounts will not be closed, but IF your savings interest is currently being deposited into your Tesco checking account, you will need to provide Tesco with the details of a UK bank account on your behalf to which you can deposit your interest by calling 0345 678 5678 (you can do not have the interest paid directly into the savings account).
You need another account in order to continue collecting additional Clubcard points
If you would like to continue collecting additional Clubcard points after you have closed your current account, you will need to purchase another product from Tesco Bank. There are a few options to consider – unfortunately, neither of the two Tesco buyers gives as many bonus points as the checking account:
- The Clubcard Pay prepaid card from Tesco. This isn’t a complete replacement for its checking account – for example, it doesn’t support direct debits and you can’t switch to it. Instead, it’s a more restricted debit card that you can top up with any UK bank account and then shop in-store and online.
It acts as your Clubcard at Tesco – that means you don’t have to swipe both. In the first 100 days after opening your account, you collect two points for every € 1 you spend at Tesco, and then one point for every € 1 (like a regular Clubcard). You also collect one Clubcard point for every £ 8 you spend elsewhere – just like you would with a Tesco Bank checking account or credit card. For more information on how it works, see our full Clubcard Pay analysis.
- Tescos purchases credit card. Tesco offers a number of credit cards that you can use to earn Clubcard points for your expenses, but the grocery card is our first choice. There is an additional Clubcard point for every £ 4 spent at Tesco (on top of the usual point for every £ 1). So if you’ve spent £ 4 on Tesco, for example, you’ll get four points on Clubcard Pay (or eight points in the first 100 days) or five points on that Tesco credit card. You also get one point for every € 8 spent elsewhere. In addition, it offers 0% interest on expenses for up to 23 months (but don’t use this as an excuse for overspending).
It’s worth noting that, in the long run, you can potentially make a lot more with a dedicated cashback credit card, as long as you only use it for normal expenses and pay off FULLY every month. For example, the Amex Platinum Cashback Everyday card accepted by Tesco offers newcomers 5% cashback up to a maximum of £ 100 in the first three months. After that, get 0.5% back when you spend up to £ 10,000 and 1% above. Remember, however, that you need to spend at least £ 3,000 per year to get EVERY cashback.
For more information, see our Guide to Credit Card Rewards.