UK: Tesco Bank relaunches their 3% interest current account

Tesco Bank has reopened applications for its 3% interest current account after temporarily withdrawing it from the market back in February due to unexpectedly high demand. When it previously offered the 3% account in January, it had to suspend new applications after receiving an unforeseen number of them. As with the original iteration of the account, it will guarantee all new applicants 3% interest on balances up to £3,000 until April 2019, while also offering 1 Tesco Clubcard point per £1 spent on its debit card. However, Tesco Bank have now added some criteria that account holders must meet to earn the top interest rate. Account holders must deposit at least £750 a month into the account and have a minimum of 3 direct debits being paid out of the account per month, excluding any direct debits to a Tesco Bank savings account; with the interest rate dropping to 0% if the requirements are not met. Existing holders will not have to meet these new criteria put in place to get the top rate.

Managing Director of Tesco Bank David McCreadie said: “I am pleased to re-open applications for our unique current account guarantee designed to provide peace of mind to our existing customers by offering a guaranteed credit interest rate, allowing them to make a return on their hard-earned money.”

It is likely that Tesco Bank could see another 3 in 10 consumers think interest rates are the most important factor.

It is likely that Tesco Bank could see another surge in applications for its current account as 3 in 10 consumers think interest rates are the most important factor when selecting a new current account, according to RFi Group UK Priority and Retail Banking Council data.

Source: RFi Group H2 2016 UK PRBC

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