Tesco Bank has been a popular option amongst savers, but it is winding down its current account services. Back in December 2019, the bank closed to new current account customers in its first step. It is now set to close for existing customers too, meaning there could be implications for those saving with the provider.
The all-important date for savers to remember is November 30, 2021.
This is the point at which Tesco Bank will be closing all current accounts, so action will need to be taken before then.
Savers with Tesco Bank, however, should not fear the changes.
This is because the provider is set to write to those who are impacted to inform them of the closure.
Moving to a new provider may be assisted by the Current Account Switching Service, designed to offer a smooth transition.
Other Tesco Bank customers may wish to stay with the provider, and simply move their balance over to a Tesco Bank savings account.
Similarly, individuals could apply for a Tesco Bank credit card if they are happy with this provider.
Customers will need to make sure their account has a zero balance by the closing date.
Gerry Mallon, chief executive of Tesco Bank, said: “The way customers shop and manage their money is constantly evolving.
“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 Bank first launched its current account back in 2014 to savers.
At present, there are thought to be around 213,000 accounts which are currently open with the provider.
But it is estimated only 12 percent of current accounts with Tesco Bank are being used as a primary current account.