Santander to takeover TSB – what it means for you

Santander has agreed to buy TSB as part of a takeover deal worth £2.65bn. 

The banking giant is set to take on all of TSB’s five million customers, which includes current accounts, loans, savings, and mortgages. 

It is still in its early stages, but the deal is expected to be completed in the first three months of 2026. 

Here Which? dives into what we know about the deal so far, and explains what it means for TSB customers. 

What we know so far

Santander’s takeover of TSB still needs approval from regulators and from the shareholders of Sabadell, TSB’s current owner, who will vote on 6 August.

If it goes ahead, Santander will become the UK’s third-largest bank for personal current account deposits, behind Lloyds and NatWest. It would also have nearly 28 million UK customers and a large branch network.

Santander has said it ‘intends to integrate TSB into the Santander Group’, meaning it’s unclear whether the TSB brand will remain.

There are also some concerns about job losses. Santander has said there will be some duplication, particularly in back-office roles. TSB currently employs around 5,000 people in the UK.

• Find out more: best banks and bank accounts in UK 2025

What will the takeover mean for customers?

For now, nothing is changing for TSB or Santander customers. 

You can continue to use your accounts, savings, and loans as normal, and keep making payments on your mortgage.

Your savings remain protected under the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per person, per banking group. 

At the moment, TSB and Santander are separate banks, so this limit applies to each. If they merge fully in future, the limit would apply across both. 

You can also keep contacting TSB or Santander customer services as you do now. 

If you have a complaint, you can still take it to the Financial Ombudsman.

• Find out more: FSCS - how your savings are protected

Could your TSB account change in future?

Santander has said it will share more details once the deal is complete. For now, it plans to integrate TSB into its business, which means the TSB brand could eventually disappear.

In the past, Santander has absorbed other UK banks, such as Abbey, Bradford & Bingley, and Alliance & Leicester, rebranding them under the Santander name.

If this happens, Santander would need to tell customers what’s changing and when. Possible changes could include:

• Account details: things like minimum balance requirements, fees, or interest rates
• Services: online banking platforms, mobile apps, and customer support could switch to Santander systems
• New account numbers or cards: you might need to update your details with companies that pay into or take payments from your account

If any products change, banks usually let you switch or close accounts without penalty. Mortgages and loans tend to stay the same, as their terms are fixed from the start.

Any changes would happen in stages, and customers would be told before anything is finalised.

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What it means for bank branches?

Santander currently has 349 branches across the UK, while TSB has 174. Both banks have confirmed upcoming closures though. 

Santander plans to close 96 branches this year, and TSB has confirmed eight closures.

So far, Santander hasn’t said whether the takeover will lead to further closures. However, in a statement Santander said it would ‘make no sense’ to have ‘two branches of the same bank in any one community’.

It added that the way customers choose to bank is changing, and all banks are adapting to reflect this.

• Find out more: bank branch closures 2025: is your local bank closing?

Should you switch from TSB?

There’s no immediate need to close your TSB account or switch to another bank. But with changes on the horizon, it’s worth checking you’re getting the best deal on your banking products.

In our latest customer satisfaction survey, Santander came 10th out of 20 banks with a score of 73%, whereas TSB ranked 17th with a customer score of 68%.

If you’re thinking about switching, there are several cash incentives available right now. 

Santander is offering £180 to new customers, while TSB has a £100 switching offer. 

Other deals include:

• Lloyds Bank: £185
• NatWest: £125 + £50
• Nationwide (member exclusive): £200
• First Direct: £175

Find out more: best bank account switching deals July 2025