Barclays to acquire Tesco Bank – here’s what you need to know if you’re a customer

The £600 million deal will include Tesco Bank’s credit card, loan and savings business. We explain what it means if you’re a customer – and some things to keep an eye on in the coming months.

Retail Banking Industry: Tesco Bank
(Image credit: NurPhoto / Contributor)

Barclays is buying Tesco's retail banking operations in a deal worth £600 million. 

The pair referred to it as a “strategic partnership”, which will see Barclays take over Tesco Bank’s credit card, loan and savings business – but not its insurance, ATMs, travel money or gift card services.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
AccountInterest rate during first 12 monthsInterest rate after 12 monthsMinimum depositEasy access?
Internet Saver4.75% Gross / AER (variable)1.25% Gross / AER (variable)£1Yes
Instant Access Cash ISA4.30% Gross / AER (variable)1.25% Gross / AER (variable)£1Yes
Swipe to scroll horizontally
Type of accountTesco rate (AER)Best deal elsewhere (AER)
1-year fixed rate saver4.80%5.21% (SmartSave)
1-year fixed rate cash ISA4.75%5.25% (Virgin Money)
18-month fixed rate saver4.50%4.98% (Charter Savings Bank)
2-year fixed rate saver4.30%5.10% (AIB)
3-year fixed rate saver4.15%4.61% (SmartSave)
5-year fixed rate saver3.80%4.50% (Isbank)
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.