Tesco PLC (LSE:TSCO)’s banking arm will close all existing current accounts from later this year, just seven years after the service was launched. 

The holders of the 213,000 personal current accounts will be sent a letter in the coming fortnight offering options including moving their balance to a different bank, to a Tesco Bank savings account or registering for Tesco’s new product, Clubcard Pay.

All personal current accounts will be shut on 30 November, with Tesco Bank having stopped accepting new accounts in December 2019.

Tesco had been looking to sell the banking business for some time.

Gerry Mallon, chief executive of Tesco Bank, said: “The way customers shop and manage their money is constantly evolving and we are committed to developing products and services which align with the needs of Tesco shoppers. 

“With so few of our current account customers using it as their primary account we want to support them to find a suitable alternative dependent on their circumstances.”