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Tesco Bank to close all current accounts

Tesco Bank to close all current accounts

The banking arm of UK supermarket giant Tesco is closing all current accounts because the majority of customers do not use them.

All 213,000 Tesco Bank Personal Current Accounts will be closed from 30 November, with customers advised to switch to a new provider or move their balance to a Tesco savings account.

The lender says that only 12% of its accounts are being used by customers as their primary current account. Most accounts have limited activity or are being used for other purposes, such as a savings pot.

In April Tesco Bank reported annual losses of £175 million, compared to a £193 million profit in the previous year.

The bank says it will now focus on serving its five million-plus customers across a range of banking and insurance products.

Gerry Mallon, chief executive, Tesco Bank, says: "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."

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