Martin Lewis' MSE issues warning over major bank with five million customers

Barclays has completed its takeover of Tesco Bank - meaning a change for credit card holders. Martin Lewis' MoneySavingExpert.com term has urged customers to check their savings rate now to see if they can get better elsewhere.

Barclays UK has entered into a long-term, exclusive strategic partnership with Tesco Stores Limited for an initial period of 10 years to market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand, as well as explore other opportunities to offer financial services to Tesco customers through Tesco's distribution channels and on the open market.

This partnership builds on Barclays UK's existing strategic partnerships with other leading UK retail, consumer electronics and loyalty programme brands. Following completion of the transaction, the business will continue to operate under the "Tesco Bank" brand, under the management of Barclays UK.

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Tesco will retain all the existing insurance and money services activities, including ATMs, travel money and gift cards. These are capital-light, profitable businesses with a strong connection to the core retail offer. Tesco Bank has around five million customers.

MSE said: "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."

C.S. Venkatakrishnan, Group Chief Executive of Barclays, commented on the takeover last week and said: "This acquisition is an important step in increasing our investment in the UK. We look forward to collaborating with Tesco Group on delivering Tesco-branded financial services. We are delighted to welcome all transferring Tesco Bank employees and customers to Barclays."

Vim Maru, Chief Executive of Barclays UK, commented: "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."