Tesco Bank to close all current accounts
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In January 2020, Tesco Bank suspended new applications for its current account. It has now gone a step further and announced that all existing Tesco Bank current accounts will be closed on 30th November.
Take a look on its website here.
The reason this account was popular with Head for Points readers was that it was possible to earn Avios or Virgin Flying Club miles with your day-to-day DEBIT card banking.
If you had this account, you were earning Clubcard points on all of your debit card transactions:
- 1 point per £1 spent in Tesco (2.4 Avios per £1 / 2.5 Virgin Points per £1)
- 1 point per £8 spent elsewhere (0.3 Avios per £1 / 0.31 Virgin Points per £1)
The ‘1 point per £1’ spent in Tesco was a very generous benefit. Even the ‘1 point per £8 spent elsewhere’ was attractive. Whilst you would be better off in most circumstances using a loyalty credit card instead, it was not always possible to avoid using a debit card.
It even worked with payments to the Inland Revenue. It was one of the few ways of profiting from tax payments. This route became less interesting to HfP readers when the Tesco / Avios partnership ended in January 2021.
Making the announcement yesterday, Tesco Bank said that only 12% of its 213,000 current accounts were being used as ‘primary’ accounts.
If you are a Tesco Bank current account holder, you will receive a letter over the next two weeks setting out what you need to do.
Want to earn more points from credit cards? – March 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:
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
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.
British Airways American Express Premium Plus
25,000 Avios and the famous annual 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 & four airport lounge passes Read our full review
The Platinum Card from American Express
40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 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: You receive a huge 120,000 Membership Rewards points if you apply for American Express Business Platinum by 9th April 2024. You receive 80,000 points for spending £12,000 within 90 days and a further 40,000 points if you retain the card for 14 months. Click here to apply.
SPECIAL OFFER: You receive 60,000 Membership Rewards points if you apply for American Express Business Gold by 9th April 2024. Remember that the card is FREE for the first year. You receive 40,000 points for spending £6,000 within 90 days and a further 20,000 points if you retain the card for 14 months. Click here to apply.
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
American Express Business Platinum
Crazy 120,000 points bonus (to 9th April) and an annual £200 Amex Travel credit Read our full review
American Express Business Gold
Huge 60,000 points sign-up bonus (until 9th April) and free for a year Read our full review
Capital On Tap Business Rewards Visa
Get a 10,000 points bonus plus an extra 500 points for our readers 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.
Barclaycard Select Cashback credit card
2% cashback on all your business spend for 3 months (1% thereafter) and no annual fee Read our full review
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