Barclays has announced the completion of its takeover of Tesco Bank, which will mean big changes for credit card customers. MoneySavingExpert.com’s experts have advised clients to check their savings rates without delay, as better options might now be available.
Under this new deal with Tesco Stores Limited, Barclays UK will start a decade-long, exclusive strategic partnership focusing on unsecured personal loans, the marketing and distribution of credit cards and deposits, bearing the Tesco brand name. It is also possible additional financial services may be offered to Tesco’s patrons.
The collaboration will bolster Barclays UK’s strategic partnerships across different sectors, with the business continuing to operate under the “Tesco Bank” brand but guided by Barclays UK. Tesco, on the other hand, will retain its insurance and money services businesses, including ATMs, travel money, and gift cards, which remain closely linked to its retail operations, reports CambridgeshireLive.
Serving roughly five million people, Tesco Bank isn’t expecting immediate changes to its products after the switch-up. However, a word of caution comes from MoneySavingExpert.com: “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, the Group Chief Executive of Barclays 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.”
Barclays UK Chief Executive Vim Maru also remarked on the significant development: “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.”