Business

Tesco Bank announces closure of personal current accounts



Tesco Bank has today confirmed all personal current accounts will close from 30 November 2021.

Its current account was closed to new business in December 2019 and will now also close for existing customers.

The bank will write to current account customers in the next two weeks to inform them of the closure of their account and to explain the options available to them.

These include moving to a new current account provider via the Current Account Switching Service; moving their balance to a Tesco Bank savings account; registering for Tesco Clubcard Pay (a new product currently in testing) or; applying for one of Tesco Bank’s credit cards.

The current account was launched in 2014 with around 213,000 accounts currently open.

It is estimated that only 12% of the accounts are being used by customers as their primary current account. Most 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 balance of £0, by the November deadline.

The closure of the current account is part of Tesco Bank’s strategy of focusing on products and services that best meet the needs of Tesco shoppers.

Gerry Mallon, chief executive at 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.

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“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.”

The supermarket’s banking arm has been around since 1997 and now helps more than five million customers manage their money every day.

More than 4,000 colleagues serve customers from three main centres in Edinburgh, Glasgow and Newcastle.

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