For the first time in 18 months, Tesco Bank is offering a sign-up bonus on the Tesco Clubcard MasterCard.
This deal is not being advertised on the Tesco Bank website but is being advertised on comparison sites. This is the link you need.
The card has a representative APR of 18.9% variable. There is no annual fee.
If you apply via the link above, you will receive a bonus of 1,000 Clubcard points when you make your first purchase within two months of receipt. This is worth 2,400 Avios or 2,500 Virgin miles.
There are a number of different versions of the Tesco Clubcard MasterCard available. The 1,000 points is only available with the ‘purchases’ version. This offers 0% interest on new purchases for the first 17 months.
The Tesco MasterCard is no longer as good a deal as it was. The earning rate was recently halved to one Clubcard point per £8 spent. Even worse, the ‘per £8’ is on a transaction by transaction basis and rounded down. A £7.99 purchase earns you nothing. A £15.99 purchase only earns 1 point.
The card is only an OK deal when using it in a Tesco store, where you will receive 1 point per £4 spent.
For long term spending, the earnings rate is as good as you will get – unless you qualify for HSBC Premier – on a FREE Visa or MasterCard:
0.125 Clubcard points for £1 (and in reality you get less because of the rounding down) is 0.3 Avios points per £1 spent
When used in Tesco, you get 0.25 Clubcard points per £1, which is 0.6 Avios per £1 spent
This isn’t a great deal but it is the best you will find.
The sign-up bonus IS OK
Even if the card is a poor deal for day-to-day spending, you may want to get one purely for the sign-up bonus and the ‘0% interest on new purchases for 17 months’ deal.
1,000 Clubcard points are worth 2,400 Avios points or 2,500 Virgin Flying Club miles.
It is not a life changing amount, but still not a bad bonus for a free credit card application.
If you take advantage of the 0% interest deal, you won’t be too bothered about the low Avios earning rate anyway. The real value in a 0% on purchases deal is to spend up to your credit limit, put enough money in a high interest bank account to cover the bill, hide the card in a drawer and then settle the bill just as the 17 months interest free period is about to end.
Want to earn more points from credit cards? – January 2021 update
If you are looking to apply for a new credit or charge card, here are our January 2021 recommendations based on the current sign-up bonus.
British Airways American Express
5,000 Avios for signing up, no annual fee and a companion voucher for spending £20,000 Read our full review
British Airways American Express Premium Plus
25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and the most generous non-Amex for day to day spending Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these:
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
Earn both Avios and BA On Business points with your business spending Read our full review
Capital On Tap Business Rewards Visa
The most generous Avios Visa or Mastercard for a limited company Read our full review
Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.