Tesco Enters Current Account Market

Tesco Enters Current Account Market.

Tesco Bank has today launched into the current account market providing stiff competition to existing stalwart bank groups.

Features Summary

• Earn Clubcard points when you spend money with your current account – 1 point for every £4 you spend in Tesco and 1 point for every £8 spent outside Tesco
• Earn 3% AER on balances under £3,000
• £5 monthly account fee – but waived if you deposit at £750 each month
• 24 hour online and telephone banking
• Arranged overdraft facility - no fixed monthly fee, only pay a simple interest rate of 18.9% variable AER for the time overdrawn (£5 fee per transaction for unarranged over draft)
• Switching Service:  Tesco Bank is part of the Current Account Switch Guarantee Scheme meaning you can easily transfer current accounts from one bank to another.

Comment

Tesco Personal Finance PLc is registered in Scotland – should be interesting to see what they do if Scotland votes for independence.

That said, it is good news and more and more smaller banks are entering the market.  Tesco and M&S have now both launched current accounts and alongside ever expanding Metro Bank, they are taking the ‘big guns’ head on.

For too long many of the larger banking groups has paid lip service to clients, mis-sold on a huge scale, not dealt with complaints properly and then asked us for bailouts after they mis-managed their business models, made huge gains with Gold Price and Fixed Interest market price fixing and still declared some tidy profits and bonuses.

We wish all the new bank market entrants well.