1. What is the Tesco Bank Minimum Payment?

The Tesco Bank credit card minimum payment is the lowest amount you must pay each month to keep your account in good standing. It's calculated as the greater of 2.5% of your balance or £5 (whichever is higher).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( MP \) — Minimum payment (GBP)
• \( P \) — Principal balance (GBP)
• 2.5% — Percentage of balance required
• £5 — Minimum fixed amount

Explanation: The calculation ensures you pay at least £5 or 2.5% of your balance, whichever is greater.

3. Importance of Minimum Payment Calculation

Details: Understanding your minimum payment helps with budgeting and avoiding late fees. However, paying only the minimum will increase interest costs and time to repay.

4. Using the Calculator

Tips: Enter your current credit card balance in GBP. The calculator will show your required minimum payment.

5. Frequently Asked Questions (FAQ)

Q1: Is there a maximum minimum payment?
A: No, but if your balance is very high, the 2.5% could be substantial. Always check your statement for exact amounts.

Q2: What if my balance is less than £5?
A: You would pay the full balance as the minimum payment would be £5 (which is more than your balance).

Q3: Does this include interest and fees?
A: The calculation is based on your principal balance. Any interest or fees would be added to your next statement balance.

Q4: Can the minimum payment change?
A: Tesco Bank could change their terms, but currently it's consistently 2.5% or £5, whichever is greater.

Q5: Is it bad to only pay the minimum?
A: While it keeps your account in good standing, it will cost more in interest and take longer to pay off your balance.