Martin Lewis's 'MSE' issues urgent warning to thousands of banking app users to 'withdraw cash immediately'

MoneySavingExpert said: "Zero plans to keep its app open until Tuesday 31 March, but it's said it can't guarantee this so it's best to act now."

The company’s website now confirms it has stopped trading and will shut down its services.

Customers have been contacted directly with further details about next steps.

Zero launched in January 2025 but has closed after failing to secure sufficient funding.

Of the 21,500 registered users, around 7,500 were actively using the app before it ceased operations.

The firm said it had contacted all account holders with instructions on how to withdraw their funds.

Zero operated as an e-money provider rather than a bank, offering a personal account, debit Mastercard and savings products.

Its services included the Zero Personal Account, Zero Debit Mastercard and the Planet Safe Saver, all of which are now being withdrawn.

The Planet Safe Saver had offered a 3.66 per cent AER variable rate and had previously been highlighted as a competitive ethical savings option.

MoneySavingExpert warned that funds held in e-money accounts are not protected by the Financial Services Compensation Scheme.

Instead, customer money is held in segregated accounts with an authorised institution, separate from company funds.

MoneySavingExpert advised customers to withdraw their balances as soon as possible.

The app is expected to remain accessible until March 31, although this is not guaranteed.

Customers can transfer their funds back to linked UK current accounts.

Those experiencing difficulties have been advised to contact the firm via email for assistance.

Transact Payments Limited will retain any unclaimed funds for up to six years, after which they may be treated under dormant account rules.

It's worth noting that when an e‑money fintech shuts down, customers’ funds are legally protected because firms must “safeguard” client money in segregated accounts or low‑risk assets.

These safeguarded funds cannot be used for the company’s own expenses and must be returned to customers if the business becomes insolvent.

Unlike banks, e‑money firms are not covered by the Financial Services Compensation Scheme (FSCS), but safeguarding rules are designed to ring‑fence customer money from creditors.

If a firm collapses, an independent insolvency practitioner oversees the return of funds, although the process can take time.