Setting out its wares: Tesco Bank’s 3pc pledge
Tesco Bank, last in the headlines when customers’ accounts were prey to a cyberattack, is seeking to win back favour by guaranteeing the 3pc interest rate it pays its current account holders until April 1 2019.
The rate applies to balances up to £3,000. Account holders can also earn Clubcard points on debit card spending, earning one point per £1 spent at Tesco and one point per £8 spent elsewhere.
Those who keep the maximum account balance of £3,000 will earn £90 interest a year. Customers who spend £1,000 each month on the Tesco debit card, with £250 spent in Tesco stores, would earn £70 in Clubcard points a year.
Those with larger savings, however, could earn up to £260 a year with Santander’s 123 account, which pays 1.5pc on balances up to £20,000 minus a £5 monthly fee.