Interest rates and fees for our Credit Cards

We’ve laid everything out clearly and simply, so you'll know exactly what to expect

Managing your credit card

Make sure you understand how your credit card works so that there are no surprises. It’s important that you’re organised with your monthly payments so you can avoid unexpected interest and fees. Here are some things to consider:

  • If you use your card, you’ll need to make a payment every month – even if you are on a 0% interest rate.
  • We’ll send you a statement every month to let you know when, and how much you need to pay.
  • If you forget to pay, or you make your payment late, you’ll be charged a £12 Late Payment fee, and you’ll lose any 0% interest rate you are on.
  • Refunds don’t count towards your minimum payment – you’ll still need to make a payment if a refund has been made to your account.
  • Don’t go over your credit limit – if you do we’ll charge you a £12 Over Limit fee and you’ll need to pay back anything above the limit as soon as possible to avoid further charges.

Our Fees

We charge fees on some transactions – here’s a quick look at the standard fees for our credit cards. If you already have one of our credit cards, you can also check your monthly statement or credit agreement for your individual interest rates and any introductory fees.

Credit Card Charges, Rates and Fees
FeeAmountDescription
Standard rate Balance Transfer fee3.99%If you make a balance transfer to an existing Tesco Bank credit card, you’ll be charged a handling fee. The fee will be charged on the day we receive the money. You’ll pay interest on the fee at the same rate that applies to the balance transfer.
Standard rate Money Transfer fee3.99%If you make a money transfer from an existing Tesco Bank credit card you’ll be charged a handling fee. The fee will be charged on the day the money is sent. You’ll pay interest on the fee at the same interest rate that applies to the money transfer.
Cash Withdrawal fee3.99% (minimum £3.00)If you withdraw cash from an ATM, over the counter, at a bank or from a cash provider, you’ll be charged a handling fee. You’ll also pay interest on this fee from the day you withdraw the cash at the same rate that applies to the cash withdrawal.
Cash Transaction feeFind out more3.99% (no minimum charge)A full list of the types of transactions we class as cash and some examples can be found via the find out more link on the left. You'll pay interest on this fee from the date you make the transaction at the same rate that applies to the cash transaction.
Foreign Exchange fee2.75%You’ll be charged a fee on any transactions you make in a foreign currency. You’ll pay interest on this fee at the same rate that applies to the transaction you made.
Returned Item feeFind out more£12.00We’ll charge this fee if your Direct Debit, cheque or other payment fails or ‘bounces’. You’ll pay interest on this fee at the rate we charge for purchases
Annual fee£36.00This fee only applies to Premium Credit Cards. If you have one, you’ll be charged an annual fee on the statement after you make your first transaction. It will then be charged every year on the month you first opened your account. You’ll pay interest on this fee at the rate we charge for purchases.
default-fees-table
Default FeeAmountDefault Fee Description
Over Limit feeFind out more£12.00You’ll be charged this fee every time you go over your credit limit or stay over it during your statement period. You’ll pay interest on this fee 28 days from when we tell you it’s been charged. Interest will be charged at the rate we charge for purchases and you won’t pay interest on this interest.
Late Payment feeFind out more£12.00You’ll be charged this fee if you don’t make your minimum payment on time. You'll pay interest on this fee 28 days from when we tell you that the fee has been charged. Interest will be charged at the rate we charge for purchases and you won't pay any interest on this interest.

Understanding interest

When and how interest is charged

If you don’t pay off your balance in full each month, you will be charged interest on your balance, in most cases. If you can’t pay your balance in full, make sure you pay at least your minimum payment to avoid unexpected fees. Interest is charged from the date the transaction or fee is added to your account. For cash withdrawals and cash transactions, it’s charged from the date the withdrawal or transaction is made.

You’ll pay interest on default fees 28 days from when we tell you that the fee has been charged. Interest will be charged at the rate we charge for purchases, and you won’t pay any interest on the interest.

Something worth noting…

If you only pay your minimum payment each month it will take you longer to clear your balance and cost you a lot more in the long term. If you pay at least double your interest, fees and charges every month, you’ll reduce your balance much quicker.

Where to find your interest rates

If you have one of our credit cards you can check your credit agreement or monthly statement for your individual rates and fees.

Introductory/promotional interest rates

If you have taken out a new card you may have an introductory or promotional interest rate. This rate could apply to purchases, balance transfers or money transfers. We’ll let you know how long the introductory/promotional rate will last when you open your new card, or when you take up an offer on an existing card. We will remind you on your statement two months before your introductory rate ends. We’ll also send a letter or email one month before the rate ends as a final reminder. When the introductory/promotional rate ends you’ll be moved to the standard rate of interest for your card. You can find this on your monthly statement.

Good to know...

If you miss a payment, or make your payment late during your introductory period then your interest rate will move to the standard rate of interest straight away.

Quick answers to some of our most common interest and fees questions


I paid part of my balance this month, why have I been charged interest?

If you have a balance on your account you’ll be charged interest on transactions from the date you make the transaction until you pay it off in full. If you pay off some of your account before your due date, you will reduce the balance, but you’ll still pay interest on the remaining balance.

I paid my balance in full this month, why have I been charged interest?

We charge interest daily, so even if you have paid your balance in full you may still see interest on your next statement. That’s to cover any previous outstanding balance from the period between the credit card bill being sent and when your payment is received.


I made my payment this month, so why have I been charged interest and a late fee?

Each month we’ll send you a statement with a payment due date. If your payment arrives after this date you’ll have to pay a late payment fee. If you make your payment before the statement is sent to you, this will reduce your balance for the following month’s statement. However you still need to make a payment to cover the time between your statement being produced and the payment due date. .

I’ve been charged interest that has taken me over my limit. Why is this?

Any interest you owe will be added to your balance. But it’s worth noting, if you are close to your credit limit, this may mean when we add your interest this will take you over your limit. When this happens we’ll charge you a fee which will appear on your statement. To avoid paying an additional fee the following month, please remember to put your account back within your agreed credit limit within 10 days.