TESCO Bank has announced it will close all of its current accounts from November this year.
Customers will either have to close their account or switch it to another bank – or to a Tesco Bank savings account – by November 30.
The supermarket’s banking arm said it was closing its service because only 12% of its 230,000 customers with an account used it as their main banking account.
It added that most customers either don’t use their account much or use it for other purposes, such as putting their savings into.
It stopped letting new customers sign up for a Tesco Bank current account back in 2019 – and now current accounts for existing customers will close for good later this year.
Tesco Bank will be writing to its customers within the next two weeks about the changes.
If customers choose to switch their Tesco Bank current account to another provider, they can do so via the “Current Account Switching Service.”
This service is free to use, and when you agree to swap, the bank you’re moving to will handle all the hassle of switching your current account – including direct debit and standings orders set up – over to a new one.
It is usually done within seven days – and you don’t even have to tell your old bank you are switching, as everything is done automatically.
Alternatively, you can choose to close your current account by calling Tesco on 0345 366 8818.
Or you can move your current account over to one of Tesco Bank’s savings accounts.
It has 10 savings account options on offer from Cash ISAs to fixed rate savings accounts – you can see what’s available on the Tesco Bank website.
Tesco Bank said customers must have a balance of £0 in their current account before the November 30 deadline.
If you don’t switch in time, Tesco Bank confirmed to The Sun that it will close your account automatically and send you a closing statement.
If you still have cash left in your account and you’ve missed the deadline, Tesco Bank will still automatically close your account for you and post a cheque with the remaining balance to your home address.
After November 30, you won’t be able to make any debit or credit transactions into your account, and any direct debit or standing orders will not be paid after this date.
It’s important to note that if you miss a bill payment, it could affect your credit score and your ability to apply for credit.
Gerry Mallon, chief executive of 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.”
Tesco isn’t the only supermarket to have ditched its current account offering this year.
Marks & Spencer closed all current accounts and its 29 bank branches earlier this month.
The closures are a result of a surge in online banking, the posh shop said.
While other banks have announced widespread branch closures as Brits opt for internet banking services instead.
HSBC announced in January that it’s shutting 82 branches this year, and Santander announced it is planning to close 111 branches by the end of August as well.
Lloyds Banking Group announced it is to shut another 44 banks in its latest round of closures too.
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