Last chance to get £50 off BA CE for 1-9 people with Tesco Premium Credit Card

One of the benefits of the Tesco Premium Credit Card is a £50 discount on a British Airways Club Europe flight for new cardholders.

This is valid for up to nine people and so is theoretically worth up to £450 (if you are a family of 9!).

This benefit is being withdrawn for applications accepted after 31st December 2016.  If you think that you will be booking Club Europe flights in the New Year, you may want to take another look at the Tesco Premium Credit Card.

In addition, you will receive 2,500 Tesco Clubcard points – worth 6,000 Avios or 6,250 Virgin Flying Club – when you apply by 5th January.

There are also two 0% deals you will receive:

  • 0% interest on purchases for six months from account opening
  • 0% interest for the first six months on Balance Transfers and Money Transfers made within 90 days of opening your account. A fee of 0.99% will be applied on any Balance Transfers and 1.99% on any Money Transfers.

You can check out the details of the card here.  The representative APR is 56.5% variable, including the £150 annual fee, assuming a £1200 credit limit.

Tesco Premium credit card

I have become more positive about this card since it launched.  This is partly because of the sign-up bonus and partly becaus the closure of the bmi Diamond Club MasterCard has left a lot of people without a decent Visa or MasterCard product for earning Avios.

Does the Tesco Premium Credit Card stack up?

It isn’t a no-brainer either way – but for some people this card will make sense.

For the first year, you are paying a non-refundable £150 annual fee to receive 6,000 Avios plus the other card benefits.  You really need to look at these other benefits to decide if the card is worth it.

Let’s go through them one by one:

Benefit:  1 Clubcard point for every £1 you spend on the card in Tesco or at Tesco Direct – plus a 5,000 point bonus if you spend £5,000 with Tesco during your card year

This card would pay you 2.4 Avios points or 2.5 Virgin Flying Club on every £1 you spend at Tesco.  This is a very decent return if you spend a lot of money with them, even if you don’t spend £5,000 per year.

Let’s imagine that you DO spend £5,000 per year in Tesco.  This may be possible if you always buy your fuel there (petrol counts towards the £5,000 target) or shop for a large family.

On that basis, you would earn 8,750 more Clubcard points per year using the Premium Credit Card than you would with the free Tesco Clubcard credit card which gives 1 point for every £4 you spend in Tesco and has no bonus.

I can recommend this card if you easily spend £5,000 per year in Tesco purely because of these extra 8,750 Clubcard points compared to using free Tesco credit card.  That would get you 21,000 Avios or 21,875 Virgin Flying Club miles which justifies the fee.

Benefit:  Comprehensive travel insurance for you and your family

This covers immediate family members under the age of 70 and includes 17 days of Winter Sports cover.  Some HFP readers have commented that the rules on pre-existing conditions appear strict but I am not an expert on this.

If you currently pay for travel insurance then this would have some value.

Depending on your age and whether you do ‘winter sports’, a bargain basement family policy will cost between £50 and £70.  If you are not leaving Europe, you will pay less.  That said, the moneysavingexpert.com ‘top pick’ (based on generosity of terms and payout history) is from LV and costs around £80 per person for global cover and just over £50 per person for European cover.

You need to decide what value you place on this benefit.

Benefit:  £50 off a British Airways Club Europe booking for up to nine people departing from London

This Club Europe benefit is being withdrawn on 31st December 2016 and you must apply and be accepted for the card by this date to receive it.

If you never pay for Club Europe then it clearly has no value.  That said, on a route like Paris or Amsterdam the premium over Euro Traveller would drop to around £50 with the discount so perhaps you would do it.

If you book Club Europe for cash on a regular basis for your family then it clearly has real value.

However … this is a one-off benefit.  More importantly, the discount code is only valid for 2 months.  If you apply now you will need to book – but not fly – before early February.

Tesco guarantees that you will have your code within 10 days of your application being accepted.  This is positive and means that, if you are planning to book Club Europe flights for cash, you could delay booking for 10 days until you have applied for the card and received your code.

Do not wait until New Years Eve to apply for the card if you want to use this.  As you must be accepted by 31st December, you need to build in some leeway in case Tesco needs to do extra background checks.

Benefits:  1% enhanced exchange rate when you buy travel money in a Tesco store using your card

I would not value this highly, although I have never compared Tesco’s FX rates to the alternatives.

Whilst currency purchases made using the card at Tesco Travel Money are treated as purchases and not cash advances, they do NOT earn Clubcard points.

Benefits:  1 Clubcard point for every £4 you spend on the card outside Tesco

The current MasterCard and Visa offers on travel credit cards are weak which enhances this offer.  Converted to Avios, you would be getting 0.6 Avios per £1 based on 0.25 Clubcard points.  With the demise of the bmi Diamond Club credit cards, this is not a bad rate.

However, remember that Tesco rounds down every transaction to the nearest £4, so a £7.99 transaction only earns 1 point and a £3.99 transaction earns nothing.

It is also worth noting that the Hilton HHonors Visa (which is free) earns 2 Hilton HHonors points per £1 spent which I value at 0.6p.  I doubt you’d value 0.6 Avios per £1 at a lot more than this.  Annual fee cards such as Virgin Flying Club Black or Emirates Elite earn 1 mile per £1 spent on the MasterCard / Visa element whilst the Lufthansa Miles & More card is free and earns 0.75 miles per £1.

Conclusion

As I said initially, there is no easy answer here.  The current deal offering 2,500 Clubcard points as a sign-up bonus until 5th January makes it more attractive:

If you spend £5,000 per year in Tesco, get the card – you will do well with it.  For these people it is a decent deal even if you pay the full annual fee.

If you currently buy stand-alone travel insurance, it may work for you

If you pay for Club Europe, it may work for you – if you can time your application around a Club Europe booking to use the £50 per person discount code.  This is only a one-off benefit for the first year, however, and the offer will be withdrawn on 31st December.

What is Bink? (And how can it win me 100,000 Avios this week?)
What is your credit card 'end game' strategy?
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Comments

  1. O/T: Morning early birds (from a late eve in FL)

    IHG advent challenge Day 5 is 126000

    126000 points
    GUCCI YBE011099001 16-03-206 BAR SILVER CUFFLINKS
    PJ-055

  2. I often spend over £5000 in a month with Tesco, let alone a year. So what I’m wondering is does the 30,000 points limit per quarter still apply if you hold this credit card? If so it has no value for me sadly.

    • The limit is enforced but not all the time, but it’s not difficult to avoid going over the limit.
      If you have a partner just get them an account, or some people get accounts for their pets 😉

      • Trying to avoid the 30,000 limit would mean not being able to use this card once you get near it though wouldn’t it? Which makes having the card pointless.

        • Tesco Bank points do NOT count towards the 30k limit.

          • When I have gone over the limit they didn’t take into account Tesco personal finance points.
            You don’t have to use the clubcard, attached to the credit card, if you don’t want to just give them a different clubcard, at the checkout, and pay with the Tesco credit card.

  3. Does buying foreign currency at Tesco counts toward the £5000?

  4. Concerto says:

    For ziggurat, you just have to fingermouse your way all over the screen. It turned up at the extreme bottom in the middle, but I still couldn’t see Iggy.

  5. Question
    1 clubcard per £1
    is that on top of the clubcards collected with a normal clubcard?
    so effectively 2 clubcard for each £1?
    Anywhere I can read about the travel insurance? Want to make sure the winter sports is adequate.

  6. With the Premium Credit Card, you’ll collect one Clubcard point for every £1 you spend in each card transaction, and you’ll also collect your normal Clubcard point on top. The minimum qualifying spend is £1.

    • the real harry says:

      correct – for Tesco spend only of course

      but everybody gets the Tesco 1 point per £ for Tesco spend, regardless of which card they use – so we can ignore it (ie these are the normal points you get when you use a clubcard)

      more interesting is using Tesco Premium card as a clubcard for Tesco petrol (ie don’t pay with it) – then you get 1 point per £1 (instead of 1 point per £2) – then you pay with Amex or whatever to get the MR points on top

      • TGLoyalty says:

        Why wouldn’t you use it as a payment card too it’s 2.4 Avios per £ on a Tesco forecourt no other card will match that?

  7. OT – is it possible to transfer from my wife’s Amex MR account to my Hilton HHonors account? Same surname.

  8. TigerTanaka says:

    Struggling with this card – I have a BA PP Amex which pays 1.5 Avios per £.

    I spend £5,000 a year at Tesco which gets me 7,500 Avios anyway but if I were to get this card I would receive and extra 6,000 Avios (on top of the BA Amex).

    I have non amex spend of £4k a year (currently on an AA Visa) which I would put through on this card (so another 2,700 Avios).

    Add in the 2,500 bonus, this card would give me 15,450 additional Avios for the annual fee of £150. Not great value when I consider that the £5k Tesco spend that currently goes towards my BA Amex 241 now goes through the Tesco MC.

    Oh, and I don’t live near London so the CE discount is worthless.

  9. Sussex Bantam says:

    Is there any reason why the analysis in “benefits 1” above compares the card with the free tesco card. Wouldn’t it be better to compare it with an Amex card ?

    Assuming you can make the £5000 minimum spend without impacting on sign-up bonuses elsewhere I see the maths as follows:

    Spend £5000 on Tesco card in Tesco – earn 5000 incremental club card points plus 5000 bonus plus 2500 sign-up bonus. 12500 extra clubcard points = 30000 Avios for £150.

    However if I had put that £5000 on my BAPP I would have earned 7500 Avios anyway,

    My net increment is therefore 22500 for £150 or Avios for 0.66p each.

    This also assumes you can get the 5000 bonus points without signing up for a second year and incurring another £150 cost.

    Please let me know if I’ve got this wrong ?!?

  10. I think I’ll wait and see what Tesco come up with in January once the BA CE deal has ended on 31st December and the current 2500 points bonus offer finishes on 5th Jan. Surely they’ll have to come up with some sort of tasty offer or no one is going to sign up for it!!