Tesco Bank halts current account applications
Tesco Bank has been forced to halt applications for its flagship current account after “unprecedented demand” from consumers.
The supermarket giant announced earlier this month that it would guarantee a 3% rate of interest for its current account customers until April 2019.
However, less than two weeks later the bank has stopped accepting new applications due to the number of new customers looking to open an account.
Tesco says all customers who applied for an account before 3am on Saturday 11 February 2017 will have their applications processed. Since that time it has stopped accepting any new applications.
It says the temporary move will allow it to process all applications and maintain service standards for existing customers. The bank says it does not know when applications will re-open.
The bank’s 3% rate of interest outstrips the top paying savings accounts and is paid on balances up to £3,000. Users also earn Tesco Clubcard points as they spend. Moneywise described the deal as “one of the most competitive accounts on the market” when it was announced.
A Tesco Bank spokesperson says: “We are delighted by the unprecedented demand from new customers applying to take out accounts with us.
“In order to best serve our existing customers, today we have decided to pause accepting new applications for the time being. In the coming weeks, we will let customers know when they can apply again for the Tesco Bank current account.”
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.