Tesco Bank announced the closure of its Clubcard Pay+ prepaid card and the linked 'Round Up' savings accounts, effective April 26. According to the bank, this decision aims to concentrate resources on its broader range of other accounts. Money Saving Expert (MSE), a consumer advice website, reported that the card and savings accounts will be scrapped on that date, urging affected customers to act quickly. The website advised customers to withdraw their money as soon as possible if they use these services.
The Clubcard Pay+ card launched in 2022 but was closed to new customers last year, as noted by Money Saving Expert. It allowed users to add money and earn Clubcard points on purchases at Tesco and other retailers. Additionally, the card featured a 'Round Up' function that automatically rounded transactions to the nearest pound, with the extra amount deposited into a linked savings account, facilitating automatic savings for users.
Customers must withdraw their funds before April 26 to avoid delays. Tesco Bank said that money left in the accounts after the closure date will still be returned to customers, but this process is likely to take longer than if they withdraw it themselves. The bank will send a final statement and return any owed money to customers who have not withdrawn their funds after the accounts close, ensuring no funds are lost.
Money Saving Expert highlighted that the closure affects both the Clubcard Pay+ card and its linked savings accounts, which were designed to help users save automatically through round-ups. The bank's focus on other accounts suggests a strategic shift away from this specific product offering. Customers are encouraged to check their accounts and follow the bank's instructions to ensure a smooth transition.
The closure raises several unanswered questions, including how many customers are impacted by the shutdown of the Clubcard Pay+ card and linked savings accounts. Beyond citing a focus on other accounts, the exact reasons for Tesco Bank's decision remain unclear. It is also unknown whether the bank plans to introduce a replacement or alternative service for collecting Clubcard points or rounding up savings. The specific timeline and process for returning funds to customers who do not withdraw them before April 26 have not been detailed, leaving some uncertainty about post-closure procedures.