Tesco Bank axes popular Clubcard savings account - customers told to withdraw cash

In messages sent to account holders, Tesco Bank said the closure would allow it to focus on other projects.

The bank acknowledged the announcement "may be disappointing" for customers and confirmed it has no plans to introduce a like-for-like replacement.

The Clubcard Pay+ account became popular among shoppers who wanted to build loyalty points while automatically saving small amounts of money.

It combined a prepaid Visa debit card with a round-up function that transferred the difference from purchases into a separate savings pot.

Customers reacted on social media after receiving notifications about the change.

One user wrote: "I can't believe that Tesco is closing down their excellent Clubcard Pay+/Round Up accounts next April.

"I always use it to save up for Christmas."

Another customer wrote: "This has worried me big time."

A Tesco Bank spokesman said: "The decision follows a careful review, and is due to limited usage of the product."

The spokesman said customers have been contacted directly with details about the closure and the steps they will need to take before the cut-off date.

The bank said it will continue to update affected customers as the closure approaches.

"You can keep collecting points with your Clubcard, and we have other savings accounts available," the spokesman added.

Tesco Bank confirmed it will not introduce a new product with the same combination of spending rewards and automatic savings features offered by Clubcard Pay+.

The Clubcard Pay+ account functioned as a hybrid between a prepaid card and a digital savings tool.

Users could load money onto the contactless Visa debit card through Tesco Bank’s mobile app and spend it in stores or online.

The loyalty points system provided two points for every pound spent at Tesco during the first one hundred days before returning to one point per pound spent.

Purchases made at other retailers earned one point for every £8 spent.

Many customers valued the Round Up feature, which automatically rounded each transaction to the nearest pound and placed the difference into a dedicated savings pot.

The system allowed users to build savings gradually throughout the year and was regularly used for events such as Christmas or holidays.

The account was made available to nearly 20 million Clubcard members upon its launch four years ago and developed a dedicated base of users who relied on its combination of spending and saving tools.

Customers with money in their Clubcard Pay+ account will be able to continue using their card until April 2026.

Tesco Bank has advised account holders to withdraw funds before the closure date.

The bank said any unclaimed money remaining in accounts after the service ends will be returned to customers.

Loyalty points will continue to be collected as normal.

Tesco Bank confirmed that points linked to an active Clubcard will transfer automatically.

Customers whose Clubcard Pay+ account is not connected to a Clubcard can apply for a standard Clubcard through the supermarket’s website or mobile app.

Subscriptions linked to Clubcard Pay+ payment details will need to be updated before the account closes.

Services such as streaming platforms or digital memberships will require alternative payment methods.

Interest for the current financial year will be paid into Round Up accounts on March 31 2026.

Customers have been asked to ensure their contact details are up to date so they receive any final payments.