Should you get the new Tandem Money credit card – with no FX fees and 0.5% cashback?

How does the idea of a free credit card which has NO foreign exchange fees and pays you 0.5% cashback on all your spending sound?

Tempting, I imagine, which is why we thought we would take a closer look at a new card product today even though it has nothing to do with ‘miles and points’.  With the closure of the Lloyds Avios Rewards credit card to new applicants, there is no longer a rewards card out there which has 0% foreign exchange fees when you are travelling.

Step forward Tandem Money.  This is another new(ish) challenger bank which runs its business via an app instead of outlets on the high street.

Tandem’s first product was a money management app, helping users to manage their money. The app pulls data from your bank accounts and calculates your available spending money by subtracting bills from the balance. It also warns users of higher bills and finds better deals.

The reason there hasn’t been a real banking product until now is that Tandem has had some bank licence issues.

Having initially gained a banking licence in 2015, Tandem lost it in March 2017 due to House of Fraser – of all people – pulling out of agreed funding due to issues with HOF’s new Chinese owners.

However, in January 2018 Tandem Money bought Harrods Bank (yes, Harrods had its own bank with a branch inside the store) and thereby got a bank licence back.  This allows Tandem Money to launch savings accounts in the future.

Tandem Money has now launched its first real product – a credit card with no FX fees and 0.5% cashback.

The Tandem credit card is a Mastercard and offers 0.5% cashback on everyday spending in the UK and abroad.There are no FX fees when you are travelling which save you 2.99% compared to the fees on the average UK credit or debit card.

In comparison, the Lloyds Avios Rewards card is the only loyalty credit card which doesn’t charge FX fees.  With the Mastercard you earn 0.2 Avios per £1 spent and with the American Express card 1.25 Avios per £1.  The Lloyds Avios American Express card remains the best deal for spending abroad but Tandem – with 0.5% cashback – is more attractive than earning 0.2 Avios on the Lloyds Avios Rewards Mastercard.

Tandem also imposes no fees for cash withdrawals abroad though you do have to pay interest from the moment you take out the money.

The Tandem cashback is added to your statement each month.  It genuinely could not be easier.

Conclusion

Let’s be honest.  With interchange fees of 0.3%, to me this credit card clearly seems financially unsustainable for Tandem, although Tandem claims that the credit card is profitable, and I’m assuming that this is just a way of luring in new customers. 

Tandem Money has a fixed term savings account in the pipeline which will exploit its new banking licence (you don’t need a banking licence to issue credit cards) and will be trying to get its credit card customers to eventually move their savings to Tandem as well.

Whether or not the card is unsustainable is not your problem though!  If Tandem is willing to run up large losses then you should take advantage of them until their funding runs out as your money is not at risk.

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Want to earn more points from credit cards? – March 2025 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:

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios Mastercard

Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

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.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review

British Airways American Express Premium Plus

30,000 Avios and the famous annual 2-4-1 voucher Read our full review

The Platinum Card from American Express

80,000 bonus points and great travel benefits – for a large fee Read our full review

Virgin Atlantic Reward+ Mastercard

18,000 bonus points 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:

SPECIAL OFFER: Until 8th April 2025, the sign-up bonus on American Express Business Platinum is increased from 50,000 Membership Rewards points to 120,000 points. You receive 80,000 points when you spend £12,000 within three months and a further 40,000 points if you spend on the card between Month 14 and Month 17. Points convert 1:1 into Avios and many other programmes. Click here to apply.

SPECIAL OFFER: Until 8th April 2025, the sign-up bonus on American Express Business Gold is increased from 20,000 Membership Rewards points to 60,000 points. You receive 40,000 points when you spend £6,000 within three months and a further 20,000 points if you spend on the card between Month 14 and Month 17. Points convert 1:1 into Avios and many other programmes. Click here to apply.

American Express Business Platinum

Up to 120,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

Up to 60,000 points sign-up bonus and FREE for a year Read our full review

Capital on Tap Pro Visa

10,500 points (=10,500 Avios) plus good benefits Read our full review

Capital on Tap Visa

NO annual fee, NO FX fees and points worth 1 Avios per £1 Read our full review

British Airways American Express Accelerating Business

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review