Tesco bank will close all of its current bank accounts due to “limited activity” from users.

The supermarket chain already closed its current account to new customers in December 2019 but have now made the decision to do the same for existing customers.

The banking arm of Tesco said the closure of accounts is part of a new strategy focusing on products and services that "best meet the needs of Tesco shoppers".

The bank estimates that only 12 per cent of its current accounts are being used as primary accounts by customers.

All 213,000 personal current accounts will be closed on November 30 with accounts being used for "other purposes, such as a savings pot".

All customers will receive a letter within the next two weeks informing them that their account will be closing, the bank said.

Gerry Mallon, chief executive of Tesco Bank, said the bank would support customers to find "a suitable alternative dependent on their circumstances".

Options will include moving to a new provider via its Current Account Switching Service (CASS) or moving their balance to a Tesco Bank savings account.

The bank will be asking customers to move any regular incoming or outgoing payments to a different account and to make sure the balance is at zero by November 30.

Mr Mallon 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. We will pay particular attention to supporting any vulnerable customers and those in need of financial assistance."