Tesco Bank pulls plug on current accounts

Tesco Bank is to close all of its personal and business current accounts at the end of November after it found that the vast majority of its customers were not using it for their main account.

Customers will soon receive a message asking them to withdraw all their money from the accounts before November 30, and change any standing orders or direct debits.

Around 213,000 accounts are currently open with the bank; however, it estimates that fewer than one in eight of these are being used by customers as their primary account.

Most of the accounts either see “limited activity”, Tesco Bank said, or are being used as customers’ savings pots.

The move will allow the bank to focus on other products and services that “meet the needs of Tesco shoppers”, it said.

It provides more than five million customers with banking and insurance products and will continue to offer credit cards and loans, among other things.

“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,” said Tesco Bank chief executive Gerry Mallon.

“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.”