In a rare bit of good news for bank customers, Tesco Bank has revealed that it’s going to remove the £5-a-month fee it charges many of its current account customers.
It means that the account is now one of the most competitive in the market, with a decent rate of interest on credit balances as well as the availability of Clubcard points.
Customers with balances of up to £3,000 can enjoy interest of 3% – significantly better than is available in most savings accounts.
The £5 fee was previously levied on customers who paid in less than £750 a month.
“With many saying that the end free banking is nigh, Tesco Bank is demonstrating that the end is not yet in sight by providing a best-buy current account that has no monthly charges,” says Charlotte Nelson, of Moneyfacts.co.uk.
“The removal of the £5 fee on its current account makes the offering not only more straightforward but also more inclusive, especially to those on lower incomes.
“Adding this change to the already strong combination of high credit interest on balances and low overdraft charges means that this account is likely to be a popular choice for both savers and borrowers alike.”
Account holders can make deposits at more than 300 Tesco stores.
The bank’s David McCreadie says: “By removing the monthly fee, we believe we are offering customers one of the best value current accounts in the market.”