Tesco to offer bank accounts

Published on Tuesday 29 July 2008 10:40

TESCO has unveiled plans to go head-to-head with high street banks after buying Royal Bank of Scotland's half of its Tesco Personal Finance joint venture.

The retail giant announced that it has bought the Edinburgh-based bank's share in the company for 950 million.

And it immediately set its sights on gaining a bigger slice of the 20 billion financial services sector.

It is planning to launch a current account and offer mortgages online and in-store.

A trial has already been launched in Glasgow.

Sir Terry Leahy, Tesco's chief executive, said: "Services are bigger and faster-growing markets than food. As consumers look to make every pound work harder, it is a good time to expand its presence."