MSE News: Tesco Bank to close ALL existing current accounts - what it means for customers

socks_uk

I just received my letter this morning...  I wasn't aware until today.  I have my wages paid into my Tesco Current Account and work in a school so I'll have to wait until the beginning of September to swap my bank details!
I've sent myself an email to my school email account to remind me to sort it out on the first day back!

eskbanker

socks_uk said:

I just received my letter this morning...  I wasn't aware until today.  I have my wages paid into my Tesco Current Account and work in a school so I'll have to wait until the beginning of September to swap my bank details!
I've sent myself an email to my school email account to remind me to sort it out on the first day back!

You could use the Current Account Switching Service (at any time) to switch your Tesco account to one at whichever bank you're planning to use in future, which would take care of automatically redirecting inbound payments such as wages, plus all DDs, etc, so you don't need to wait until September....

jem16

colsten said:

jem16 said:

colsten said:

jem16 said:

colsten said:

Peter17833 said:

I am one of those with a Tesco Current account.  I use it and have money coming and going from the account every day or two, so do not have it dormant, like some others.  I have not yet been informed by Tesco that it will be closing accounts, but saw the news on MSE first.
I have asked, on the Tesco Bank forum, what will happen to my Tesco Savings Account, as it is linked to my Tesco Current Account (for payment of interest earned, and for the withdrawal of money) and have been told to call the Savings Team on a premium rate number.  As someone who is speech and hearing impaired, I am unable to do this, and have asked for an alternative, as the accounts were opened, and have been managed for years, without the need for a "call" to anyone; why can Tesco - like others banks and building societies - not have an online system that allows the updating of linked accounts, etc. without having to call and talk to someone?
I can ask a friend to make the call on my behalf, but I imagine the nightmare of going through security questions with my friend as the intermediate, will be onerous.
It is Tesco who are making the decision to close accounts - the letter they send should include a form to amend the linked account to another bank, with a pre-paid envelope to return the signed form.
If you are reading this, Tesco Bank, please can you take notice - not everyone can call a telephone number and talk to someone, and to not offer a written or online (or both) alternative is a form of discrimination.

Perhaps take this opportunity to move your savings away from Tesco Bank, as they are only paying a derisory interest rate. Check out https://moneyfacts.co.uk/savings-accounts/ for a comprehensive list of rates currently available.

Not that derisory now. Their Internet Saver is now 0.5% which for Instant Access is not too bad.

Only on new accounts, and only in the first 12 months. Thereafter, the 0.4% bonus ceases and they pay 0.1%. 

Easy enough just to open a new account once that bonus ends. I've been doing that for years until recently when they dropped the bonus rate. Looks like it's back now and hopefully will continue.

Shame you lost out on those lovely other instant access accounts which were paying way more than Tesco. For example, I still have a 1.02% account until 16/08/2021, when it drops to 0.7% - - still way above what Tesco, or others, are paying. Previously the same account was 1.15% until 21/02/2021, 1.35% until 21/08/2020 and 1.6% until 01/06/2020. There were also others that paid 1.2% until well into 2020. I had many Tesco accounts for several years and they were very useful at the time but they were sadly left in the dust at least 4 years ago.

I had other savings accounts too so didn't miss out. Tesco Internet Saver was well up with the top ones till maybe late 2019 for me as I still had bonus rates till then. It was useful along with the 3 Current Accounts I had paying 3% interest at the time.

goldieandblackie

Well, I'm glad to say that my switch over to First Direct is going well.

My debit card arrived within 3 days and I have been able to transfer £1000 over from Tesco bank account and just awaiting my pin code and have a transfer date.

First Direct credit the current account the £100 for switching within 28 days.

Malchester

My switch to Nationwide is going well too. Should be complete on Wednesday. All payment details are already on Natiownide account. Already have a NW Flex account so have switched everything to them at least for the time being. I have always found them excellent with their current account (had it for 34 years!!!!)

molerat

Looks like they are sending out a letter for each account rather than each account holder.

And they have finally got pending transactions working just as they are closing the accounts down.

socks_uk

eskbanker said:

socks_uk said:

I just received my letter this morning...  I wasn't aware until today.  I have my wages paid into my Tesco Current Account and work in a school so I'll have to wait until the beginning of September to swap my bank details!
I've sent myself an email to my school email account to remind me to sort it out on the first day back!

You could use the Current Account Switching Service (at any time) to switch your Tesco account to one at whichever bank you're planning to use in future, which would take care of automatically redirecting inbound payments such as wages, plus all DDs, etc, so you don't need to wait until September....

Well it wouldn't hurt to try it.  Payday is 15th August so I could do it on 16th maybe?  I'm back at school on 2nd September so I'd have a few days to sort it out or ask admin to do it.

eskbanker

socks_uk said:

eskbanker said:

socks_uk said:

I just received my letter this morning...  I wasn't aware until today.  I have my wages paid into my Tesco Current Account and work in a school so I'll have to wait until the beginning of September to swap my bank details!
I've sent myself an email to my school email account to remind me to sort it out on the first day back!

You could use the Current Account Switching Service (at any time) to switch your Tesco account to one at whichever bank you're planning to use in future, which would take care of automatically redirecting inbound payments such as wages, plus all DDs, etc, so you don't need to wait until September....

Well it wouldn't hurt to try it.  Payday is 15th August so I could do it on 16th maybe?  I'm back at school on 2nd September so I'd have a few days to sort it out or ask admin to do it.

First port of call is to decide who you want to bank with post-Tesco, and bear in mind that account opening and switching are two separate processes, although banks will sometimes make it sound like they're bundled together.  If you already have another account that you'd be planning to use then you can arrange the switch on a convenient date, but if you need to open a new account first then that'll take time (and you should ensure it's fully up and running before initiating any switch) so you can make progress at your own pace.

binaryuniverse

HSBC switch has popped up at just the right time.

(although I think I've tried to apply for an HSBC account for a switch offer 3 or 4 times, now. Never been successful, even though I have no issue with the criteria, and have a spotless credit history. Their system is even picker than First Direct. Who I had no problem with).

*California*

I have an overdraft limit with the Tesco Bank Current Account.

I wonder if it would be possible to switch the overdraft limit to another bank...