UK-based Tesco Bank has decided to close all personal current accounts from 30 November 2021.
Tesco Bank said that only 12% of its current accounts are being used by customers. Most accounts have limited activity or are being used for other purposes.
The decision is part of the bank’s strategy to primarily focus on products and services that meet the needs of its customers.
The lender, which closed its current account offering to new business in December 2019, currently has 213,000 personal current accounts.
The customers will be informed about the closure and their options in the next two weeks, the bank added.
Customers have the option to switch their banking to another current account provider using the bank’s Current Account Switch Service.
Those not willing to switch have been asked by the bank to move any regular incoming or outgoing payments to another account and to make sure their account has a balance of £0 by 30 November.
Tesco Bank chief executive 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 our 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.”
Tesco Bank, which provides banking and insurance solutions to more than five million customers, noted that will continue to offer credit cards and loans among other services.