Tesco was founded by grocer Jack Cohen, a simple market stallholder who began selling Tesco tea in 1924. Using the initials TES from the tea supplier, T.E. Stockwell, and the first two letters of his surname, he opened the first Tesco store in 1929 and the first Tesco supermarket in Maldon, Essex, in 1958.
During the following years Tesco enjoyed astonishing growth, consolidating this with a number of acquisitions. But it was not until 1995, with the launch of their revolutionary Clubcard loyalty scheme, that the business became the dominant force in UK retail we know today.
In 1997, Tesco Personal Finance launched in partnership with Royal Bank of Scotland, offering branded financial services such as insurance, loans, savings, mortgages and credit cards. The business was renamed Tesco Bank in 2008, after the acquisition of RBS’s remaining stake in Tesco Personal Finance.
Banking group: Tesco Personal Finance PLC
- October 2017 – Tesco Bank launches its dedicated ‘new build service for Intermediaries’, offering quick processing of their new build mortgage applications.
- October 2018 – FCA fines Tesco Bank £16.4 million for its failure to prevent a cyber attack in 2016.
- February 2019 – Tesco Bank changes mobile banking app so that iPhone customers can use Siri to check account balances.
- September 2019 – Lloyds Bank agrees to buy Tesco Bank mortgages in £3.8bn deal.
- February 2020 – Tesco Bank stops accepting new applications for its personal current account.
- September 2020 – Tesco Bank cuts current account interest rate from 1% to 0% for existing customers.
- October 2020 – Tesco Bank agrees to acquire Ageas UK’s stake in Tesco Underwriting.
- Collect Clubcard points when you use your credit or debit card.
- Tesco Pay+ digital wallet makes shopping more convenient by letting you pay for your Tesco shopping and collect Clubcard points with a mobile app.
- Pay by Bank lets you pay your Tesco Bank credit card straight from your bank via the Tesco app or online banking.
Tesco current accounts:
- Tesco bank account
Tesco Bank launched a current account in 2017 which, at the time, paid a competitive 3% interest on balances up to £3,000. However, in February 2020 the bank announced it would be halting applications for new customers and 7 months later it announced it was slashing the interest rate for existing customers from 1% to 0%.
__7-day account switch guarantee: __
Tesco Bank is part of the 7-day Current Account Switch Guarantee service which means it will take care of moving over your payments and existing balance when you switch, while your old bank will take care of closing your old account. This should be done within 7 working days.
Note: Tesco Bank is no longer accepting new applications for its current account.
- 0% purchases
- 0% balance transfers
- Low APR
- All Round Card (balance transfer & purchases)
- 0% money transfers
- Foundation Card (for bad credit)
- Fixed rate cash ISA
- Fixed rate saver
- Instant access cash ISA
- Instant access savings account
- Internet saver
- Junior cash ISA
No, Tesco Bank sold off its mortgages arm in 2019.
- Online banking for all customers
- Mobile application (Android/iOS)
__Business banking: __
__FSCS deposit protection: __
Yes, up to £85,000 per account holder
- Authorised by the Prudential Regulation Authority (PRA)
- Regulated by the Financial Conduct Authority (FCA) and PRA. Registration number 186022
- Subscribes to the Lending Standards Board’s Standards of Lending Practice
1 December 2020