Tesco Bank will close all of its current accounts later this year after a “careful” review of its products.
The supermarket chain is writing to customers to say that their current account will be closing on November 30.
Tesco Bank, which has offered a current account service since 2014, has around 213,000 active current accounts.
But research carried out by the firm found that just 12% of those were being used as primary accounts.
Customers are expected to receive letters confirming the move within the next fortnight, which will inform them of their options beyond the closure.
Options will include moving their funds over to another company before the closing date. Customers have also been asked to ensure that their account has a balance of £0 by November 30.
Tesco Bank services on credit cards, loans and insurance products will be unaffected by the decision.
The firm already closed its current accounts to new business in December 2019.
In a statement, Gerry Mallon, chief executive of Tesco Bank, said: “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.
“With so few of out 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.”
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