TESCO Clubcard members can earn double points for three months if they sign up for the supermarket's new prepaid loyalty card.
Tesco Bank's Clubcard Pay+ has launched after a trial – with shoppers even earning points on purchases not from Tesco.
What is a prepaid debit card?
Prepaid cards are debit cards loaded up with cash from your existing current account.
In this case, you can send money to your Pay+ account via the Tesco Bank app.
There's no overdraft, but you can treat it like a normal debit card and use it for spending in shops and online – and to make withdrawals.
While some prepaid cards charge fees for signing up and withdrawing cash, Tesco's Clubcard Pay+ doesn't.
It will also earn you Tesco Clubcard points on any spending with the prepaid card – though only a handful.
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That means maximising Tesco rewards for the supermarket's most loyal customers.
The pay-as-you-go card scheme also lets shoppers "ringfence" their spending by only pre-loading the exact amount they want to spend to their Clubcard Pay+ card.
And for their first three months, Pay+ holders are being offered two Clubcard points for every £1 spent using in Tesco and on Tesco Fuel.
Normally, Clubcard holders receive one one point for every £1 they spend.
For purchases made elsewhere, Clubcard Pay+ holders earn one point for every £8 spent.
Can I use a prepaid card to save?
Tesco's new scheme involves a separate "round-up" savings account where Clubcard Pay+ spending is rounded up to the nearest pound.
The difference then goes into the savings account, allowing you to spend that money on your next purchase.
For example, if you spend £24.50 on a shopping basket, an additional 50p will be taken from your Clubcard Pay+ card and place into the round-up savings account, which you can access for your next purchase.
These savings earn interest of 0.25% gross/AER.
But you can switch off this feature using the app.
Where do I sign up – and what are the risks?
All 20 million Tesco Clubcard holders are now eligible to apply for Pay+ cards.
You can do that on Tesco's website.
There's a maximum points limit of 30,000 each quarter.
That's equivalent to £30,000 of Tesco spending, or £15,000 of Tesco spending during your first three months.
According to Tesco, 5.25million Clubcard points have already been collected on Clubcard Pay+ cards since the trial began last summer.
Prepaid cards do carry risks as they're not usually covered by the Financial Services Compensation Scheme (FSCS).
That's a system protecting consumers' accounts containing up to £85,000 against their bank collapsing.
But as Clubcard Pay+ is tied to Tesco Bank, they are protected by the FSCS.
That's a genuine boon for Tesco customers tempted by the scheme, as they'll receive the same protection as they will for other bank and savings accounts.
Plus, while rival prepaid cards like Ode do have annual fees, there isn't one for Clubcard Pay+.
It has already become one of Money Saving Expert's top-pick prepaid cards.
Keep up to date with the best high street loyalty schemes from Boots to Superdrug.
And keep an eye on which supermarket staples are rising in price the most as the cost of living crunch bites.
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