The Tesco prepaid card is now available to ALL 20 million Clubcard holders
You can top up the prepaid card through any UK bank account, plus it rounds up expenses and saves them
Firstly, Clubcard Pay + is not the same product as the Tesco Bank checking account, which is no longer available to new or existing customers. Instead, the new debit card is primarily aimed at helping customers budget – and its features, which remain the same as when they first tried it, are restricted as a result. Here are the key things to know:
- You can top up using any UK bank account and then use the card for in-store and online purchases. Clubcard Pay + comes with a Visa contactless debit card. You can add money to it from your existing bank account using Tesco Bank’s mobile banking app, then use it like any other card to pay in store and online.
- You can accumulate Clubcard points on your expenses. The Clubcard Pay + debit card acts like your Club card when used in Tesco, meaning you don’t have to swipe the two. You will earn two points for every £ 1 spent at Tesco in the first 100 days of opening your account, and then one point for every £ 1 thereafter, which is the same as with a regular Club Card (the Normal exclusions apply, you will only get points on items such as tobacco, lottery tickets, prescription drugs and formula). You’ll also collect a Clubcard point for every £ 8 you spend elsewhere – the same as with a Tesco Bank credit card (see below for more on this).
- It comes with a “rounding” feature and a savings account. When you spend on the card, your transaction is rounded up to the next nearest pound, with the difference going into a “Round Up” savings account (this is automatically opened when you sign up for Clubcard Pay +). For example, if your basket is £ 14.85, an additional 15 pence will be taken from your Clubcard Pay + card account and paid into the Round Up savings account. You can turn off this feature using the app, if you prefer.
The Round Up Savings Account allows unlimited withdrawals without penalty and pays variable interest of 0.1% AER – but is easily beaten by the best easy-to-access accounts, which currently pay up to 0.7%.
It’s also worth noting that this feature is not unique to Clubcard Pay + – several leading banks including Halifax and Lloyds, as well as app-based banks Monzo and Starling, also offer it to their checking account customers. . See our guide to digital banking for more information.
- Money held with Clubcard Pay + and Round Up is protected. Tesco Bank is fully regulated in the UK, so you get the usual security protection of £ 85,000 per person on funds you hold in Clubcard Pay and Round Up accounts.
But you cannot set up direct debits and he has no overdraft
But before removing the prepaid card, you should pay attention to the following points:
- He has no overdraft. If your balance drops below zero (for example, when a merchant accepts payment without checking whether you have enough money in your account), you will need to top up your account immediately – otherwise you could face suspension or suspension of your account. even closed. But you will not be charged any fees in this scenario.
- You cannot switch to this account or make withdrawals from it. Tesco says that Clubcard Pay + is not designed to be used as your main bank account, so you cannot use the checking account switch service and it does not support direct debits, so you will not be able to pay for them. your household bills in This way.
- It is expensive to use abroad. While you can still earn a Clubcard point for every £ 8 spent overseas, any gain is totally wiped out by the fees. Tesco charges a 2.75% currency exchange fee on all Clubcard Pay + debit card transactions made outside the UK.
If you make a cash withdrawal from an ATM outside the UK in a foreign currency (non-euro), you will need to pay an additional 1% cash withdrawal fee (although there is no withdrawal fees for euro withdrawals in Europe). For comparison, our current Top Pick travel debit cards charge no fees on overseas expenses or withdrawals.
You could earn more cashback with a credit card
If you think Clubcard Pay + is right for you, you can apply online through the Tesco website. There will be a gentle credit report search when you apply, but it will not affect your creditworthiness even if you are rejected.
However, while this can be an easy way to earn extra points in the short term, in the long term it is possible to earn a lot more points or cash back using a rewards credit card, provided you only use it for normal expenses. and repay it FULL every month. For example:
- The Amex Platinum Cashback Everyday card offers beginners 5% cash back for the first three months (up to a maximum of £ 100). After that you get 0.5% back on your spending up to £ 10,000 and 1% above. However, note that you need to spend at least £ 3,000 per year to get ANY cash back.
- The Amex Preferred Rewards Gold card offers beginners who spend at least £ 3,000 in the first three months an introductory bonus worth up to £ 184 in Nectar Points, a £ 100 M & S / Amazon voucher or 23,000 airline / hotel points. In addition, you earn points continuously on all your expenses. It’s free in the first year but costs £ 140 per year from the second year on – so plan to cancel before then if you want to avoid it.
Tesco Bank also offers several credit cards that allow you to earn Clubcard points, including:
- Tesco Bank Credit Card Purchases. He doesn’t have an introductory bonus, but he pays an additional Clubcard point for every £ 4 spent at Tesco (on top of the usual point for £ 1). So if, for example, you spent £ 4 at Tesco, you would get four points via Clubcard Pay (or eight points in the first 100 days) or five points on the Tesco credit card. You also get a point for £ 8 spent elsewhere. Plus, it offers up to 23 months of interest on 0% spending (but don’t use that as an excuse to overspend).
Check out our guide to credit card rewards for full details and our top picks, including more non-Amex options.