Nothing will immediately change for Tesco Bank customers. Barclays will continue to use the Tesco Bank brand on all existing Tesco Bank banking products through a partnership agreement with Tesco.
The deal was announced earlier this year and approved by the High Court in October.
The agreement means that Tesco Bank savings accounts, Clubcard Pay+ accounts, credit cards and loans are now run by Barclays. However, insurance products, travel money, gift cards, and ATMs were not included in the transfer and remain with Tesco Personal Finance under the Tesco Insurance and Tesco brands.
In conjunction with completion of the acquisition, Barclays UK has entered into a long-term strategic partnership with Tesco for an initial period of 10 years to market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand.
I’m a Tesco Bank customer – do I need to do anything?
If you have a Tesco Bank customer, you don’t need to do anything. All of the products and services that have been transferred to Barclays will remain under the Tesco Bank brand and you can continue to use them as normal.
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If you have savings with both Tesco Bank and Barclays, it’s important to understand that they both now come under the same banking licence. This means they share Financial Services Compensation Scheme (FSCS) protection.
The FSCS covers each individual saver up to £85,000 in the unlikely event that a bank goes bust. So if you have more than £85,000 saved between Barclays and Tesco, you should consider moving some of your money to another provider.
Ken Murphy, group chief executive of Tesco, said: “We are delighted to be working alongside Barclays to unlock even greater value for Tesco Bank customers. Through our strategic partnership, customers will have access to new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard.
“This is a significant moment for all our colleagues at Tesco Bank and I want to say a heartfelt thank you for all their hard work, helping millions of loyal customers to manage their money for more than 25 years. Their dedication is relentless and I know that this new partnership with Barclays will only build on their success.”
