Gerry Mallon

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 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.

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.”