Tesco Bank is trialling new prepaid debit card with perks like extra Clubcard points
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SHOPPERS can get double Clubcard points for three months using a new prepaid debit card from Tesco Bank.
The supermarket giant has launched Clubcard Pay and is giving users extra points when shopping at Tesco, as well as rewarding spending at other shops.
Clubcard Pay is currently being trialled by Tesco Bank and is available to current and new customers of Tesco's Clubcard loyalty scheme.
Users get a debit card that can be pre-loaded with cash from another bank account.
There is no overdraft but you can treat it like a normal debit card so you can use it for spending in shops and online as well as to make withdrawals.
It is linked to your Tesco Clubcard and any spending will earn points.
Supermarket loyalty schemes - which has one?
MOST UK supermarkets have loyalty schemes so customers can build up points and save money while they shop.
Here we round up what saving programmes you'll find at the big brands.
- Iceland: Unlike other stores, you don't collect points with the Iceland Bonus Card. Instead, you load it up with money and Iceland will give you £1 for every £20 you save.
- Lidl Plus: Lidl customers don't collect points when they shop, and are instead rewarded with personalised vouchers that gives them money off at the till.
- Morrisons: The My Morrisons: Make Good Things Happen replaces the More Card and rewards customers with personalised money off vouchers via the app.
- Sainsbury's: While Sainsbury's doesn't have a personal scheme, it does own the Nectar card which can also be used in Argos, eBay and other shops. You need 200 Nectar points to save up £1 to spend on your card. You need to spend at least £1 to get one Nectar point.
- Tesco: Tesco Clubcard has over 17million members in the UK alone. You use it each time you shop and build up points that can be turned into vouchers - 150 points gets you a £1.50 voucher. Here you need to spend £1 in Tesco to get one point.
- Waitrose: myWaitrose also doesn't allow you to collect points but instead you'll get access to free hot drinks, and discounts off certain brands in store.
Shoppers are being offered two Clubcard points for every £1 spent using Clubcard Pay in Tesco and on Tesco Fuel.
Normally Clubcard holders get one one point for every £1 they spend.
The new card offers double points when you first sign up, but only for the first three months after you open an account.
After that, cardholders will go back to receiving one point for every £1 spent in Tesco both in-store and online.
You will also get one Clubcard point for every £8 spent at stores other than Tesco, which makes the product similar to a cashback or rewards card.
Clubcard Pay also lets you monitor how much you are spending using the Tesco Bank mobile App.
There is also a feature for rounding up your spending to the nearest pound and it sets aside this extra amount in a sperate savings pot
The money earns an interest rate of 0.1% in the Round Up Savings Account but you can also transfer it elsewhere to get higher returns.
There is no charge to use the card in the UK but you will need to pay 2.75% for overseas spending.
In contrast, Sainsbury's Bank offers its credit card users extra Nectar rewards on supermarket shopping worth three points for every pound spent in Sainsbury's, Argos, Habitat and Tu Clothing.
M&S Bank launched a Club Rewards scheme for credit card holders this week.
It gives customers three points for every £1 spent in M&S in-store and online and one point for every £5 spent elsewhere.
How to cut the cost of your grocery shop
SAVING on your shop can make a big difference to your wallet. Here are some tips from comparison site Money.co.uk about how you can cut the cost of your shopping bills:
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
- Never shop hungry – you are far more likely to buy more food if your tummy is rumbling
- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
You can sign up on the and just need to provide an email address and password as well as an image of your passport or driving license to prove your identity.
Tesco Bank will do a soft search of your credit file and if approved you will be sent a Visa debit card and PIN in the post.
The trial is running until Autumn before a wider roll out and only 20,000 people will be able to get the card at this stage.
This is just a prepaid card so you need to make sure it is topped up so you can pay for items.
It isn't possible to setup direct debits or standing orders with the card, as it's not a current account, and you can't use the Current Account Switching Service so will need to sign up yourself directly.
The card is run by Tesco Bank, which is covered by the Financial Services Compensation Scheme.
This means up to £85,000 loaded onto the card will be protected.
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