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.
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? – May 2022 update
If you are looking to apply for a new credit or charge 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. 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.
The Platinum Card has doubled its sign-up bonus to 60,000 Membership Rewards points, which convert to 60,000 Avios or other airline miles, if you apply by 1st June 2022.
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 (SPECIAL OFFER) and an unbeatable set of travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
30,000 points bonus (SPECIAL OFFER) 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.