Tesco Bank borrower or saver? Its credit cards, loans and savings are set to be run by Barclays in future – here's what you need to know
If you have a Tesco Bank credit card, loan or savings account, this is set to be run by Barclays in future as part of a "strategic partnership" between the banks. However, the Tesco Bank brand will remain – and there's NO change for new or existing customers right now.
Supermarket giant Tesco, which wholly owns and operates Tesco Bank, currently has 3.7 million customers across the services being sold to Barclays. The move still has to be approved by regulators and is expected to be completed in the second half of 2024.
Tesco Bank said that the deal with Barclays will allow it to focus on its retail business, such as its grocery stores. Tesco Bank will, however, continue to own and operate its ATMs, gift cards, insurance and travel money services.
The announcement comes just weeks after rival Sainsbury's Bank confirmed plans to stop offering banking services in the future.
Existing Tesco Bank customer? Don't worry – nothing is changing for now
Under the future partnership with Barclays, Tesco-branded banking products and services will remain. Barclays has also hinted that it could use its expertise to "enhance" the Tesco Clubcard loyalty scheme – though it's not yet clear what this will mean in practice.
For the time being, there is NO change to Tesco Bank's products or services – so you can keep using them as normal. You can also continue to reach out to Tesco Bank's customer services with any queries or complaints.
If you're a Tesco Bank saver, your savings of up to £85,000 with it remain protected by the UK's Financial Services Compensation Scheme. However, once the sale is complete, this protection will be shared between Tesco and Barclays – so if you have savings with both, these will only be covered up to a combined total of £85,000. For more on this, see our Savings safety guide.
Of course, it could be worth taking this opportunity to check you're getting the best possible deal – see our guides on:
- Top savings accounts
- Top cash ISAs
- Cutting existing loan costs
- Shifting credit card debt to 0%
- Cheap insurance
- Cheap travel money
Before switching, remember to check for any exit fees or penalties.