Barclays completes Tesco Bank takeover - what it means for your credit card and savings
by James Harrison, Levi Winchester · ChronicleLiveBarclays has successfully clinched a takeover of Tesco Bank in a move set to impact millions holding savings, credit cards, and loans. The acquisition encompasses Tesco's credit card portfolio and unsecured personal loans – assets valued around £8.3 billion – and approximately £6.7 billion tied up in customer deposits.
Initially announced earlier this year, the deal crossed the finishing line on November 1 after getting the green light from both regulators and the High Court.
Tesco Bank customers can breathe easy for now - it’s business as usual with uninterrupted access to existing banking services.
Despite the change in management, Tesco's familiar branding will continue to adorn its financial products such as credit cards, loans, and savings accounts, all of which are to be administered under the Barclays umbrella post-completion.
Barclays is also poised to issue new financial products adorned with the Tesco logo.
The transition comes following Tesco Bank's closure of all current accounts back in 2021. Yet, while day-to-day services remain unchanged, the team at Martin Lewis' MoneySavingExpert.com is prodding consumers to reassess their savings rates and scout for preferable alternatives, reports the Mirror.
MSE points out: "Barclays typically offers lower interest rates on your savings compared to Tesco Bank. Tesco Bank says there are no changes to its products as a result of this move, but keep an eye on your rate and switch if you can get more elsewhere."
The collaboration does not encompass Tesco ATMs, gift cards, insurance, or travel money services. However, it does include Clubcard Pay+, a prepaid debit card.
Tesco plans to return £700 million to shareholders using the proceeds from this deal. Tesco's CEO, Ken Murphy, believes the agreement will "unlock even greater value" for Tesco Bank customers, providing them with access to "new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard".
Ken Murphy, Group Chief Executive Officer of Tesco, expressed his delight at working alongside Barclays to provide more value for Tesco Bank customers.
He 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".
Vim Maru, Chief Executive of Barclays UK, also commented on the partnership, stating: "Today marks a significant step as we continue to grow Barclays UK. We will bring the strength of both businesses together, benefitting customers and colleagues.
"I am excited that the combination of our brands, alongside the benefits of Clubcard and its loyalty scheme, will support millions of households across the UK with their financial needs."
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