Savings update as you could secure ‘incentive’ by switching your current account

Tesco Bank has announced over 213,000 customers will be affected as it closes its current account later in the year. With money still in these accounts, Helen Saxon – banking editor at MoneySavingExpert spoke on MoneyBox last weekend to advise customers on their next steps.

However, Tesco estimated that only one out of eight people use their Tesco current account as a primary account and most of them had “limited activity” so that could be an explanation as to why they are closing these accounts down.

If customers do not move their money out by November a cheque will eventually be sent with your remaining balance.

Customers with outstanding overdrafts may still be able to switch using the Current Account Switch Service if their new bank agrees to take on the overdraft.

Those who have had problems arise during the pandemic and may have a poorer credit record still have options when switching accounts from Tesco.

“It still lets you pay bills from it; you can still get your salary paid in, it still gives you a debit card, the only thing you won’t get is an overdraft.”

The bank said all its 213,000 personal current accounts would cease to exist on November 30, 2021.

It comes after M&S Bank closed their branches earlier this month ahead of closing all current accounts in August. Customers can expect to receive a letter this month which will inform them of account closures.

The bank has said it will support customers to find a “suitable alternative dependent on their circumstances”.

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In preparation for the closures, Customer Service Desks in Tesco stores will no longer offer cash withdrawals or deposits from October 15, 2020.



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