Barclays completes takeover of Tesco Bank - what it means for your savings and credit card

The deal between Barclays and Tesco includes credit cards and unsecured personal loans, worth about £8.3billion, and approximately £6.7billion in customer deposits

Barclays has completed a takeover of Tesco Bank in a move that affects millions of customers with savings, credit cards and loans.

The deal includes Tesco's credit cards and unsecured personal loans, worth about £8.3billion, and approximately £6.7billion in customer deposits. The takeover was announced earlier this year and was completed on November 1 following approval from regulators and the High Court. If you're a Tesco Bank customer, you'll be able to continue to use your services as normal.

Tesco branding will remain on its banking products - including credit cards, loans and saving accounts - but they will be run by Barclays now the deal has been completed. Barclays will also distribute new credit cards, loans and savings accounts, but again with the Tesco branding. Tesco Bank closed down all its current accounts in 2021.

However, while there will be no change to your services, Martin Lewis' MoneySavingExpert.com term has urged customers to check their savings rate now to see if they can get better elsewhere. 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."

The partnership doesn't include Tesco ATMs, gift cards, insurance and travel money services. It does include Clubcard Pay+ which is a prepaid debit card. Tesco is to hand £700million back to shareholders using the proceeds of the deal. Tesco chief executive Ken Murphy said the deal will “unlock even greater value” for Tesco Bank customers, while giving them access to “new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard”.

Ken Murphy, Group Chief Executive Officer 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”

Vim Maru, Chief Executive of Barclays UK, said: “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.”