Understanding interest rates and fees for our Credit Cards

If you pay off your statement balance (excluding any balances on a 0% rate) in full each month, you will not be charged interest on your purchases. However, we'll charge interest at the applicable rate on your other balances, excluding those on a 0% rate. 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 will not pay any interest on the interest.

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.

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'll 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.

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

Interest is applied from the day a transaction is added to your account until the day you pay it off.

We charge interest daily, so even if you paid your balance in full, you may still see interest on your next statement. This is to cover any previous outstanding balance from the period between the credit card statement being sent and when the payment is received. For example, if your statement is issued on the 10th of each month and you pay your balance in full on the 15th of the month, interest will still be applied for the 5 days from the 10th to the 15th. This will be charged on your next statement – we call this residual interest.

The sooner you make your payment after your statement is produced, the less the interest will be, unless you pay in full and on time each month. This is because we charge the interest on the average daily balance of the card (the amount subject to interest).

If you pay off your statement balance in full, minus any 0% offers you have, for two payments in a row, we will not charge you any interest on any new purchases you make.

Figures are for illustrative purposes only.

1. You receive your credit card statement.

You have not used your credit card in a while. When your statement arrives, you decide to pay everything you owe.

2. Your statement says you owe £1000.

This amount includes interest up to the day the statement was produced, but it does not include interest from the days after that.

3. You pay the full amount.

You use your debit card to pay £1000.

4. You receive your next statement.

You still have not used your card. But now your statement says you owe £10. This is called residual interest - it’s the interest from the time between your last statement and the day your payment arrived.

5. You pay the £10.

You use your debit card to pay £10. This is also known as a final interest charge.

6. You've cleared your balance.

If you do not use your card again, next month you’ll receive another statement showing your balance is now £0. If you do make more purchases, since you have paid your statement balance in full for two payments in a row, we will not charge you any interest on these purchases.

There are certain scenarios where residual interest does not apply:

You'll be charged £12.00 if you do not make your minimum payment on time. You'll pay interest on this 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 will not pay interest on this interest.

If you applied for your Clubcard Plus Credit Card before 21 July 2020 you will not be charged a late payment fee.

You will not be charged a fee if you go over your credit limit.

If you make a balance transfer to an existing Tesco Bank Credit Card, you’ll be charged a handling fee of 3.99%. 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.

If you make a money transfer from an existing Tesco Bank Credit Card, you’ll be charged a handling fee of 3.99%. 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.

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 of 3.99% with a minimum of £3.00. 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.

You'll be charged a 3.99% fee on cash transactions. Visit our Credit Card FAQs for details of the types of transactions we class as cash and some examples. You’ll pay interest on this fee from the date you make the transaction at the same rate that applies to the cash transaction.

You’ll be charged a 2.75% 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.

No fee.

No fee.

You'll be charged a £36.00 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.

You pay £7.99 a month for your Clubcard Plus subscription.