Written by Karen Bryan
Tesco Bank is due to launch a current account in mid 2014. Tesco Bank already offer credit cards, insurance, loans, mortgages and savings accounts. As a current account is the bedrock of many people’s personal finance, this is probably a shrewd move.
I’m not sure how Tesco Bank plan to attract customers to their new current account. Maybe a wad of Clubcard points or access to special offers on their other financial products?
There’s an increasing trend for financial institutions to offer exclusive products to their current account holders. However, these products aren’t always the best available on the market, so make sure that you do some research before assuming that loyalty pays.
Santander 123 Current Account holders have access to an exclusively uncompetitive Three Year Fixed Rate Bond paying 2.1% with a minimum opening balance of £500. Whereas, Secure Trust Bank are paying 2.71% on their three-year fixed rate account. Nationwide’s Flexclusive Cah ISA pays 1.75% on an instant access account, but you can only add the current tax year’s subscription to this account. However, you can get 1.75% on a Virgin Cash ISA, which accepts transfers from previous tax years.
Perversely, Halifax used to offer Reward Current Account holders extra interest on variable rate savings accounts, but that’s disappeared and I couldn’t spot any enhanced rates for existing customers on their website.
Rates of interest correct on 23 December 2013.