Tesco Bank to close current accounts
Tesco Bank closed to new current account customers in December 2019 and will now close for existing customers too.
The bank will write to its current account customers to inform them of the closure of their account and to explain the options available to them. Customers will receive their letter in the next two weeks.
If you have a Tesco current account, you have the following options:
- Move to a new current account provider via the Current Account Switching Service (CASS)
- Move your balance to a Tesco Bank savings account
- Register for a Tesco Clubcard Pay prepaid card currently being trialled
- Apply for a Tesco Bank credit card
The Tesco Bank current account was launched in 2014 with about 213,000 accounts currently open. It is estimated that only 12% of Tesco Bank current accounts are being used by customers as their primary current account. Most accounts have limited activity or are being used for other purposes, such as a savings pot.
Customers who choose not to switch to a new current account have been asked to move any regular incoming or outgoing payments to a different account, and to make sure their account has a zero balance by Tuesday 30 November 2021.
Gerry Mallon, chief executive of Tesco Bank, said: “The way customers shop and manage their money is constantly evolving and we are committed to developing products and services which align with the needs of Tesco shoppers.
“With so few of our current account customers using it as their primary account we want to support them to find a suitable alternative dependent on their circumstances. We will pay particular attention to supporting any vulnerable customers and those in need of financial assistance.
“Customers who have been using our current account as a savings pot may be better suited to one of our tailored savings products. And shoppers who are looking for a payment option which allows them to continue collecting Clubcard points in and out of Tesco may want to consider Tesco Clubcard Pay or a Tesco Bank credit card.”