If you are looking for a way to give your Avios or Virgin Flying Club a little free boost for the new year, this deal is worth a look.
Tesco Bank is still offering a ‘secret’ sign-up bonus on the Tesco Clubcard Mastercard.
This deal is NOT being openly advertised on the Tesco Bank website but it is being offered on some comparison sites and I have permission from Tesco Bank to offer it here. This is the link you need.
This offer will end on Monday – although I don’t know exactly when on Monday. I would apply over the weekend if you’re interested, just to be certain.
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 or make a balance transfer within two months of receipt. This is worth 2,400 Avios or 2,500 Virgin miles.
(In reality, because Tesco still runs regular conversion bonuses to Virgin Flying Club, it should be worth 10% or 20% more than 2,500 miles if you convert to them.)
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.
Other versions of the Tesco Clubcard Mastercard are available, some with lower interest rates and some with good interest free or balance transfer deals.
Your day-to-day earnings rate
The Tesco Clubcard Mastercard is the most generous FREE Visa or Mastercard for earning Avios points unless you qualify for HSBC Premier, although that isn’t saying much.
The earning rate is now one Clubcard point per £8 spent. 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.
This means that you receive:
0.125 Clubcard points for £1 (in reality you get less because of the rounding down) which 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
The earning rate, before adjusting for rounding, is higher than the Lloyds Avios Rewards Mastercard (review) which gives you 0.25 Avios per £1 and has a £24 annual fee. That card does come with the upgrade voucher for spending £7,000, however, which can be valuable.
The sign-up bonus is OK
Whether or not you decide that this is your best option for day-to-day Visa or Mastercard 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, by any means, but it doesn’t require much effort on your part either.
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? – August 2022 update
If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.
EDIT: Until 25th October 2022, there is an exceptionally generous sign-up bonus on The Platinum Card. You will receive 60,000 Membership Rewards points – double the usual amount – and £200 to spend at Amex Travel. You need to spend £6,000 within six months to earn the bonus.
British Airways American Express Premium Plus
25,000 Avios and the UK’s most valuable card perk – the 2-4-1 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
60,000 points, £200 travel credit and an unbeatable set of travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and 1.5 points for every £1 you spend 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 offers:
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
British Airways Accelerating Business American Express
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
Capital On Tap Business Rewards Visa
10,500 points bonus – the most generous Avios Visa for a limited company Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.