Tesco Bank Remove £5 Current Account Fee

Written by Karen Bryan

logo_tesco-bankHot on the heels on Santander’s announcing that they are increasing the monthly fee on their 123 current account from £2 to £5, Tesco Bank have decided to remove the £5 monthly fee charged if you deposit less than £750 a month in their current account.

Tesco Bank pay a variable rate of 3% interest on their current account, but that’s only on balances up to £3,000. Whereas, you can earn a variable rate of 3% on balances between £3,000 to £20,000 in the Santander 123 Current Account.

I’ll probably open a Tesco Bank Current Account to use as a savings account. Unlike many high interest current accounts, I now won’t need to set up a standing order to first pay in the minimum monthly amount, and then another standing order to withdraw that amount, to avoid paying a monthly fee, and in order to maintain the maximum balance to earn as much interest as possible from the account.