Tesco Bank has finally unveiled its current account, 14 years after it first offered banking services, in what is being positioned as “designed for Tesco customers, by Tesco customers”.
The supermarket giant said it canvassed the opinions of more than 20,000 customers, and then included all the key features that matter most to them.
Initially it will be offered to Tesco Bank’s existing 6 million customers in the UK, although the plan is to widen this to Tesco’s 16 million Clubcard holders with the lure of extra Clubcard points on purchases in and out of its stores.
Customers will get one Clubcard point awarded for every £4 spent in each purchase transaction within Tesco, and one point awarded for every £8 spent in each purchase transaction outside of Tesco. However, direct debits, standing orders, cash withdrawals and gambling payments do not qualify for points.
The account offers 3% interest on balances but will charge a £5 fee unless holders pay in £750 a month. However, it will also aim to help customers to avoid charges with text and email alerts to avoid going into the red.
Tesco launched its bank as a joint venture with RBS in 1997 but took full control of the business in 2008. It is still not known how much marketing spend will be pumped into promoting the new account; WDMP has worked with Tesco Bank – and handles direct marketing and advertising for the brand – since 2011.
Tesco Bank chief executive Benny Higgins said: “In designing our current account we have listened to more than 20,000 customers to understand what they want. And the account we are launching today offers all the features they told us mattered most. There are no gimmicks; just a simple, rewarding, modern, convenient current account, designed for Tesco customers, by Tesco customers.”
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