Tesco delays current account launch

Banking customers hoping to open a current account with Tesco will have to wait until next year after its launch was delayed.

Edinburgh-headquartered Tesco Bank, which offers insurance, credit cards and savings products, was set to offer a current account this year but the release was put back to allow it to take advantage of new rules making it easier for customers to switch.

The Independent Commission on Banking last year recommended that a free current account redirection service is formed to improve the system by which customers can switch bank accounts and is set up by September 2013.

Tesco Bank, which has 6.5 million customers, was launched in 1997 as a joint venture between supermarket giant Tesco and Royal Bank of Scotland. Tesco acquired RBS’ 50 per cent stake in 2008 for £950 million and Tesco Bank is now fully owned by Tesco.