In a major shift for UK retail banking, Sainsbury's Bank is closing its doors for good, forcing 1.8 million customers to switch to NatWest by the end of December 2025. The supermarket chain is exiting the financial sector entirely to refocus on its core food business.
The NatWest Takeover: What's Changing
NatWest has acquired the main banking business from Sainsbury's, taking on its credit cards, personal loans, and savings products. The deal includes the entire customer base, who are now being migrated onto NatWest's systems. This process has been underway for months, with the transfer of credit card and loan customers completed in October.
The final phase now involves savings account holders, who are the last group to be moved. Notably, the bank has ended the option for cash ISA holders to transfer their savings to a provider other than NatWest ahead of the takeover.
What Customers Need to Do
From the end of December, all former Sainsbury's Bank accounts will be officially closed. Customers will no longer be able to access Sainsbury's Bank online banking portal or its mobile application. Instead, they must use NatWest's digital services.
NatWest has stated it will contact all affected customers with "sufficient notice" before the migration is complete, providing clear instructions on the necessary steps. This is particularly important for those who are already existing NatWest customers, as their accounts will need to be merged or managed separately.
Continuity of Services and Guarantees
The bank has moved to reassure customers about the practicalities of the switch. A key point is that all existing Direct Debits will transfer over automatically. Customers will remain covered by the Direct Debit Guarantee, though their bank statements will show the debits under the name 'NatWest Bank Plc'.
This move marks the end of Sainsbury's 27-year venture into banking, which began in 1997. For the 1.8 million individuals impacted, the coming weeks will involve adapting to a new banking provider as one chapter closes and another begins.
