Almost 90,000 customers with Tesco Clubcard Plus savings accounts will have their accounts shut in October.
The Tesco Bank account, which hasn't been available to new customers since 2009, offers interest of 0.99% AER variable on up to £1 million. You can also use it to pay for shopping in Tesco, and earn one extra Clubcard point per £1 spent in the supermarket on top of the usual points.
If you have one of the accounts, it'll be closed on 13 October 2017. Any money you've left in the account then, including interest accrued up to 12 October, will be returned to you via cheque.
Tesco Bank has told us that you won't lose any Clubcard points you've collected via the account – though you'll receive a new Clubcard, and all existing points will be carried over.
For more ways to maximise your Clubcard points, see our Reclaim and Boost Tesco Vouchers guide. And also see Top Savings and Best Bank Accounts for details of other accounts that offer interest and rewards.
There's another way to earn extra Clubcard points
Tesco Bank's current account also offers additional Clubcard points. You need to weigh up if it's worth opening one just for the extra one point per £1 at Tesco and one point per £8 spent elsewhere, but it does also come with a decent guaranteed savings rate until 2019. Also be aware that you'll be credit-checked if you apply for the account. Here's how it works:
- It pays 3% AER variable on up to £3,000 per account, and Tesco Bank guarantees the rate won't fall below 3% until 1 April 2019 (though it could rise).
- To get any interest, you need to pay in £750 and pay out at least three direct debits each month – and direct debits to a Tesco Bank savings account don't count. These rules apply to statement months rather than calendar months.
- You're allowed two accounts per person (so £6,000 savings in total). Couples can open two each to earn interest on up to £12,000, though you need to meet the requirements on each account. Currently, if you have a Clubcard Plus account you can only open one current account, though once they're closed you'll be able to open two.
- If you open two Tesco Bank current accounts, it's possible to cycle the £750 minimum monthly pay-in between the two.
- If you use the debit card you get extra Clubcard points. It's one point per £1 on debit card spending at Tesco until 1 April 2019 (then one point per £4), on top of normal Clubcard points, and one point per £8 spent elsewhere.
Unfortunately you're not able to open a Tesco Bank current account if you live in Northern Ireland.