Martin Lewis has highlighted two financial products from Tesco Bank and M&S Bank that could benefit supermarket shoppers, but cautioned that they require careful financial management. Speaking on his BBC podcast, the money-saving expert addressed a listener's query about financing a new phone and TV purchase.
The listener planned to spend around £400 on a mid-range iPhone and £1,500 on a TV, considering using savings or opting for a Buy Now, Pay Later scheme or a zero percent credit card. They were also attracted by the ability to access cash, as their emergency fund was low after recent boiler repairs.
Lewis advised that saving in advance is generally best, but if borrowing is necessary, he recommended a zero percent spending credit card from M&S Bank or Tesco Bank. These cards offer rewards such as Clubcard points or M&S points on spending. Tesco Bank provides 21 months of zero percent interest on purchases, while M&S Bank offers up to 12 months depending on the card.
Lewis outlined three benefits of using such credit cards: Section 75 purchase protection, rewards from the provider, and the ability to 'stooz' by placing the saved cash into a high-interest savings account earning over 4.5 percent. However, he warned of risks: 'If you don't do it right, something happens, you have an emergency, it can go wrong.' He stressed the importance of making minimum payments and clearing the balance in full.
