Tesco Bank has announced it plans to close all 213,000 of its personal current accounts from Tuesday 30 November 2021.
The bank, which had closed its current account offering to new business in December 2019, says the decision supports its strategy of “focusing on products and services that best meet the needs of Tesco shoppers”.
Tesco Bank estimates that only 12% of current accounts are being used by customers as their primary current account.
Most accounts show limited activity or are being used for other purposes, such as a savings pot.
Gerry Mallon, CEO of Tesco Bank, says: “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.”
The bank will write to its current account customers within the next two weeks to inform them of the closure of their account and to explain the options available to them.
These will include moving to a new current account provider using the Current Account Switching Service (CASS) or moving their balance to a Tesco Bank savings account.
Mallon adds the bank will aim to provide customers with support during the process of closing or switching their account by the 30 November deadline, paying particular attention to “supporting any vulnerable customers and those in need of financial assistance”.