Well - you haven't! I had a letter today from Tesco Bank to say that as from the 30 November 2021 they will be closing ALL current accounts and that I need to get my balance to zero before then and cancel any direct debits or standing orders.
Wonder why they are doing this? Wasn't it profitable enough for them? Are they cherry picking what financial services they offer?
Probably get my Tesco Credit Card cancelled next. Have had one ever since they started - long time ago - and have NEVER paid them a penny in charges.
Also wonder if any other banks are contemplating doing the same.
This has been on Moneybox (Sat, 12 noon, Radio 4) for the past few weeks. They have bout 250k customers with a current account and about 1 in 8 are actually active.
It is not profitable as there are not really enough users and Tesco makes their money from overdrafts. Credit cards are 'safe' as are savings. Tesco make more than enough money from these products.
It was suggested (and I concur) that people really do need two (or even three) current accounts. One would be the main account and have all the direct debits and payments made from it. The second (or second and third) would be back up accounts for when 'the system' goes down. It is recommended that these other accounts are actively used every six months or so. Keep £100 in there and withdraw, via a cashpoint, £10 or £20 each six months. Every two years or so, pay some money into these accounts.
However, do not get lots of accounts at once as it can affect your credit rating.
If and when the main account is closed by the bank, or suspended etc, you will always have an emergency account whilst the switching is underway (that takes about 7 days).
I can give you more info if you want/need.
And for anyone who gas a Tesco current account, HSBC are, from today offering £140 to switch your current account to them. There are some rules for gaining the bribe so perhaps you might check them out.
That sounds strange @Flossy 🧁🧁🧁 wouldn't have expected that. If it had been an email I would have taken it for a scam but I don't think a letter would be as it would have your correct details on.
I don't have a Tesco bank account but if you go on money saving expert they often tell you which banks have the best transfer deals.