THOUSANDS of Tesco Bank customers have just three weeks to switch or close their accounts before the supermarket shuts the service for good.
The grocer revealed plans to close its current account banking arm in July, giving customers until November 30 to find a new provider.
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But if you want to use the handy Current Account Switching Service you’ve only got until November 15.
Tesco Bank said in the summer that it is closing the service because just 12% of its 230,000 customers use it as their main current account.
Most people either don’t use the account much or use it for other purposes such as for their savings.
In 2019 it made the decision to block new customers from signing up for a Tesco Bank account.
The company will continue to provide credit cards, loans, insurance and savings accounts.
The only customers affected by the change are Tesco Bank current account holders.
Tesco recently launched Clubcard Pay+, giving shoppers a top-up debit card so they can collect more loyalty points.
I’m a Tesco Bank customer – what do I need to do?
If you’re a Tesco Bank customer you should have received a letter informing you of the change.
You can continue using your account as usual until November 30.
But you won’t be able to use the Current Account Switching Service after November 15.
The service transfers all your outgoing and incoming payments such as your salary so you don’t have to manually set them up again.
If you do want to use the switching service, first you need to research which current account best suits your need.
You can use comparison websites such as Money Saving Expert and Compare The Market to find all the information in one place.
It might be worth thinking about which banks are offering a cash bonus for switchers, too.
Then you should double check that you’re eligible for the current account you want to switch too – this could be based on your direct debits or incoming cash.
If you’ve got an overdraft you will need to agree that with your new bank and whether they agree to this depends on your personal circumstances.
To start your switch, ask your new bank or building society to move your old account using the Current Account Switch Service.
If you miss the November 15 deadline, you can still close your Tesco Bank current account and find a new bank to open an account with.
You need to take your balance to zero in order to close it.
This means your cash should be moved to your new account and you should not be overdrawn.
If you can’t find a new overdraft, or your new bank offers you one that doesn’t cover your debt, you can arrange a payment plan with Tesco Bank.
What happens if I miss the deadline?
If you don’t switch in time, Tesco Bank confirmed to The Sun in July that it will close your account automatically and send you a closing statement.
If you still have cash left in your account and you’ve missed the deadline, Tesco Bank will still automatically close your account for you.
They’ll then post a cheque with the remaining balance to your home address.
After November 30, you won’t be able to make any debit or credit transactions into your account.
Any direct debit or standing orders will not be paid after this date, meaning you could end up accidentally missing a bill payment.
This can have a knock on effect on your credit score.
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