Tesco Bank to close all personal current accounts

It comes after it closed its current accounts to new business in December 2019, with it now closing for existing customers.

Customers will receive a letter informing them that their current account will be closing, and explaining what their options are. These include moving them to a new current account provider through the Current Account Switching Service or moving their balance to a Tesco Bank savings account.

They could also register for a Tesco Clubcard Pay - which is an account that comes with a debit card and is designed to help shoppers pay, save or collect Tesco Clubcard points - or apply for one of Tesco Bank’s range of credit cards. The firm will provide customers with any support needed during the process of closing or switching their account by the 30 November deadline.

Tesco Bank’s chief executive Gerry Mallon said: “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."

The Tesco Bank current account was launched in 2014 with around 213,000 accounts currently open. It’s estimated that only 12% of Tesco Bank current accounts are being used by customers as their primary current account, with most having limited activity or are being used for other purposes.