Tesco Bank customers provided accounts advice by expert
Make the most of your money by signing up to our newsletter for FREE now
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Tesco Bank has announced over 213,000 customers will be affected as it closes its current account later in the year. With money still in these accounts, Helen Saxon – banking editor at MoneySavingExpert spoke on MoneyBox last weekend to advise customers on their next steps.
Ms Saxon discussed customer switching options, and highlighted potentially favourable choices for savers.
She said: “Banks will often pay for your custom. At the moment Virgin Money offers a £150 voucher to switch.”
You can redeem this voucher on activities, such as hot-air balloon rides, driving days and sushi classes.
It also pays 2.02 percent AER variable interest on up to £1,000 and has a top-pick debit card for overseas use.
you could save by switching your current account (Image: GETTY)
She added: “Otherwise, you’re looking at cash back on bills, Santander have a 123 Lite Account that gives that.
“You can get accounts with small amounts of interest, Nationwide Flex Direct and the Virgin Money account as well.”
There are a myriad of options available depending on what a person has previously been using their current account for.
She said: “If you’re using it as a main current account, it’s best to switch and it’s quite easy to do these days with the current account switch service, just takes seven working days and the bank does this for you.
However, Tesco estimated that only one out of eight people use their Tesco current account as a primary account and most of them had “limited activity” so that could be an explanation as to why they are closing these accounts down.
If customers do not move their money out by November a cheque will eventually be sent with your remaining balance.
Customers with outstanding overdrafts may still be able to switch using the Current Account Switch Service if their new bank agrees to take on the overdraft.
Those who have had problems arise during the pandemic and may have a poorer credit record still have options when switching accounts from Tesco.
Banks offer incentives to switch current accounts (Image: GETTY)
Ms Saxon said: “It can be hard especially if you have debt elsewhere, or you’re on a low income.
“But what you need to look for is an account which doesn’t have a minimum pay in because that will help.
“If you’re not having any success, head to one of the big high street banks and ask about a basic bank account.
“It’s designed for people with poorer credit scores.
“It still lets you pay bills from it; you can still get your salary paid in, it still gives you a debit card, the only thing you won’t get is an overdraft.”
The bank said all its 213,000 personal current accounts would cease to exist on November 30, 2021.
It comes after M&S Bank closed their branches earlier this month ahead of closing all current accounts in August. Customers can expect to receive a letter this month which will inform them of account closures.
The bank has said it will support customers to find a “suitable alternative dependent on their circumstances”.
In preparation for the closures, Customer Service Desks in Tesco stores will no longer offer cash withdrawals or deposits from October 15, 2020.