Changes to the lesser-spotted TSB Avios and TSB Premier Avios credit cards

New HfP readers may not know that TSB used to issue two Avios credit cards.

When TSB separated from Lloyds, part of the divorce proceedings involved custody of the Avios contract.  TSB ended up retaining the right to issue an Avios credit card, but it was weaker than the Lloyds Avios Rewards card.  Unsurprisingly, it was pulled from the market soon after.

Existing cardholders have retained their cards.  However, with American Express pulling all of its licensing deals, the American Express element of the TSB Avios package is ending on 27th September.

In addition, the TSB Premier Avios credit card – which offered a companion voucher – is being closed completely from the same date. 

Going forward:

TSB Avios credit card holders will only have a Mastercard product, not an Amex

Premier card holders will be moved to the standard card

The earning rate will be a poor 0.2 Avios per £1 on UK spend and the slightly better – albeit with a 3% FX fee – 0.4 Avios per £1 on overseas spend

What is the best alternative to the TSB Avios credit card?

If you still have the TSB Avios credit cards, I recommend you switch to the Tesco Clubcard Mastercard (representative APR 18.9% variable).

The earning rate on this card isn’t great either, but it is the best Avios Visa or Mastercard available unless you are wealthy enough to qualify for HSBC Premier.  You earn 1 Clubcard point (2.4 Avios) per £8 spent – calculated on a ‘per transaction’ basis, so small transactions are penalised.  You are still likely to come out ahead on UK spending.

There is currently a sign-up bonus of 1,000 Clubcard points (2,400 Avios) on one specific version of the Tesco Clubcard Mastercard – see here for details.  There is no annual fee.

If you are happy to walk away from Avios, you can’t beat the new Virgin Atlantic Mastercard.  The free card has a 5,000 mile bonus and offers a whopping 0.75 miles per £1 – almost 4x what the TSB Avios card earns.  The annual fee card has a 15,000 mile bonus and offers 1.5 miles per £1.

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Want to earn more points from credit cards? – April 2024 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.

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 12th May 2024, the Capital on Tap Business Rewards Visa card is offering a bonus of 30,000 points, convertible into 30,000 Avios. You must have a Limited Company to apply. Click here to learn more and click here to apply.

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.