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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.

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Tesco Bank to close all current accounts

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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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