(This deal has now expired – it was pulled early on Monday morning)
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. This version (click) offers 0% interest for 40 months on balance transfers. This version (click) offers 0% interest for up to 28 months on new purchases. These cards do NOT offer 1,000 Clubcard points for signing up.
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.
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.