In a shocking announcement, Tesco Bank said that it will close all current accounts from November as there were not enough customers using their current accounts. The bank asked them to close all their personal and business current accounts at the end of November. Customers will soon asked 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, but it estimates that fewer than one in eight of these are being used as primary accounts. Most of the accounts have ‘limited activity’ or are being used as savings pots. The bank said the move will allow them to focus on other products and services that ‘meet the needs of Tesco shoppers’.
It provides more than five million customers with banking and insurance products and will continue to offer credit cards and loans, among other things. ‘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', said Tesco Bank chief executive Gerry Mallon. He said that the customers who have been using current account as a savings pot may be better suited to one of their 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.