Martin Lewis issues urgent warning to five million bank customers over 'alarming' changes

Finance guru Martin Lewis and his team have sounded the alarm for Barclays and Tesco Bank customers following significant changes due to Barclays' completion of its takeover of Tesco Bank's credit card portfolio. MoneySavingExpert.com, founded by Mr Lewis, has urged Tesco Bank clients to "reassess their savings rates" immediately.

The expert team recommends looking for alternatives that might yield better returns.

Tesco and Barclays UK have entered a decade-long 'strategic partnership', which will predominantly affect credit cards, personal loans, and deposits marketing and distribution. This collaboration aims to bolster Barclays UK's strategic alliances across different industries while continuing the operation under Tesco Bank branding but with Barclays UK in control.

Although Tesco Bank will retain its insurance and money services business, including ATMs, travel money, and gift cards, MoneySavingExpert.com cautions: "Barclays typically offers lower interest rates on your savings compared to Tesco Bank. Tesco Bank says there are no changes to its products as a result of this move, but keep an eye on your rate and switch if you can get more elsewhere," reports the Mirror.

C. S Venkatakrishnan, the group chief executive of Barclays, has expressed his views on a recent deal: "This acquisition is an important step in increasing our investment in the UK. We look forward to collaborating with Tesco Group on delivering Tesco-branded financial services. We are delighted to welcome all transferring Tesco Bank employees and customers to Barclays."

Meanwhile, Vim Maru, Barclays UK's chief executive, added: "Today marks a significant step as we continue to grow Barclays UK. We will bring the strength of both businesses together, benefitting customers and colleagues. I am excited that the combination of our brands, alongside the benefits of Clubcard and its loyalty scheme, will support millions of households across the UK with their financial needs."