Tesco Bank has today confirmed all Tesco Bank Personal Current Accounts will close from Tuesday 30 November 2021. Tesco Bank’s Current Account was closed to new business in December 2019 and will now also close for existing customers.
Tesco Bank will write to 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.
These options include:
- Moving to a new current account provider via the Current Account Switching Service (CASS)
- Moving their balance to a Tesco Bank savings account
- Registering for Tesco Clubcard Pay (a new product from Tesco Bank currently in test with a panel of Tesco shoppers and colleagues)
- Applying for one of Tesco Bank’s range of credit cards.
- Customers can find more details on which product might be right for them at tescobank.com/current-accounts/
The Tesco Bank Current Account was launched in 2014 with c213,000 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.
Tesco Bank will provide customers with any support needed during the process of closing or switching their account by the 30 November deadline. Customers can use the Current Account Switch Service at www.currentaccountswitch.co.uk to switch their banking to another current account provider. This is a guaranteed free service and the switch can be done within seven days.
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 balance of £0, by Tuesday 30 November 2021.
Tesco Bank serves over 5 million customers across a range of banking and insurance products.
The closure of the Current Account supports Tesco Bank’s strategy of focusing on products and services that best meet the needs of Tesco shoppers, helping them to manage their money a little better every day.
Gerry Mallon, Chief Executive, 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.”
Tesco Bank offers award-winning credit cards, money services for Tesco shoppers, highly rated insurance and loan products, and savings products with a strong emphasis on value, helpful benefits and rewarding loyalty.
Tesco Clubcard Pay
Tesco Clubcard Pay is an account which comes with a debit card and is designed to help shoppers pay, save and collect Tesco Clubcard points. Tesco Clubcard Pay offers shoppers more control of their money, allowing them to upload and ringfence their grocery spend from any UK current account into their Clubcard Pay account through the free Tesco Bank mobile banking app.
Customers will collect Clubcard points on most of their shopping, both in and out of Tesco. Tesco Clubcard Pay also comes with a Round Up savings account, which lets customers build a savings pot by rounding up their spending to the nearest £1. Tesco Clubcard Pay is currently in test with a panel of Tesco shoppers and colleagues, before being launched later this year.
Tesco Bank Savings
Tesco Bank has a range of savings products, including fixed rate and instant access options. A number of these are among the most competitive in the market following recent increases to interest rates.
Tesco Bank Credit Cards
Tesco Bank has an award-winning range of credit cards to suit customers’ needs, whether they want to transfer a balance, get help building their credit score, or spread the cost of a big purchase. Tesco Bank Credit Cards also function as a Clubcard and Tesco Clubcard points can therefore be collected with purchases.
