A challenger bank is set to buy Harrods Bank, in a move which would see existing customers of the luxury store's spin-off moved across to the Tandem brand.

The deal, which will bring about £80 million of capital to app-based bank Tandem, is still awaiting approval from the Financial Conduct Authority and the Prudential Regulation Authority, so full details are yet to be announced.

Tandem hit a stumbling block earlier this year when a substantial investment from the company behind House of Fraser was withdrawn, leading to it losing its banking licence. If approved, this new deal would see Tandem gain Harrods' licence. Approval could come in the next couple of months, though there is no set timeline.

What if I'm a Harrods Bank customer?

Harrods Bank currently offers savings accounts, mortgages, international money transfers and gold bullion, and has in the past featured in our best buys for easy-access and fixed-rate savings accounts.

If the deal is approved, all of Harrods Bank's customers will be moved to the Tandem brand.

If you're in the middle of a fixed savings deal, Harrods Bank says the terms and conditions will remain the same, including the interest rate – we've asked if you'll be able to close your account early if you don't want to be moved to the Tandem brand, but exact details won't be finalised until the deal's approved.

Any money you have saved with Harrods is currently protected up to £85,000 by the Financial Services Compensation Scheme, and if the deal goes ahead, it will continue to be protected under the Tandem brand.

Regardless of whether the deal goes ahead, Harrods Bank will shut its only branch in its Knightsbridge store, stop offering business and personal current accounts and close some older savings accounts. Affected customers are being sent letters, and a spokesperson for Harrods Bank said these changes had been agreed before the Tandem deal.