Martin Lewis Issues Urgent Warning Over Zero Banking App Closure
Financial expert Martin Lewis and his team at MoneySavingExpert (MSE) are urging customers of the Zero Sustainable Money App to take immediate action as the fintech startup ceases all operations. The banking application, which stopped trading on March 18, is set to close all customer accounts, with the final deadline currently set for Tuesday, March 31, though this date cannot be guaranteed.
Immediate Fund Withdrawal Recommended
MSE has strongly advised all Zero app users to withdraw their deposits in full as soon as possible. The closure affects every account type offered by the provider, including the Zero Personal Account, Zero Debit Mastercard, and Planet Safe Saver products. According to MSE's analysis, while 21,500 people were registered on the platform, only 7,500 had been active users who regularly conducted transactions before the shutdown announcement.
The fintech company has confirmed it has contacted all customers via email with specific instructions regarding the closure process. However, MSE emphasizes that users should not wait for these communications and should initiate fund withdrawals immediately through the app interface while it remains operational.
Reasons Behind the Sudden Shutdown
Zero, which launched its mobile application in January 2025, announced it was shutting down because it failed to secure additional funding necessary to sustain business operations. The company described itself as a "sustainable alternative to banking" offering a free money application, personal account services, debit Mastercard facilities, and a unique GreenScore feature for environmentally conscious consumers.
It is crucial for customers to understand that Zero was not a traditional bank but rather an electronic money (e-money) application. This distinction has significant implications for consumer protections and fund recovery processes following the closure.
Critical Consumer Protection Information
Funds held in Zero accounts do not benefit from Financial Services Compensation Scheme (FSCS) protection, which typically safeguards deposits up to £85,000 in UK-regulated banks. Instead, customer money was held in segregated accounts with an authorized credit institution, separate from the operational funds of Transact Payments Limited, Zero's payment services provider.
MSE provides clear guidance for affected customers: "These accounts were linked to and funded by an existing UK current account, so presumably you can withdraw your funds to this account. You can also email zero@transactpay.com if you are experiencing any difficulties accessing your funds."
Post-Closure Fund Recovery Process
Transact Payments Limited has confirmed that any deposits remaining in Zero accounts after the March 31 closure date will be held for a period of six years. During this timeframe, customers can still access their funds by contacting the dedicated email address: zero@transactpay.com.
However, after this six-year holding period, any unclaimed funds may be treated according to applicable laws governing dormant or unclaimed financial assets. MSE strongly recommends against waiting until after the closure date, stating: "You should still be able to withdraw funds after 31 March, but it's best not to wait."
Customers should note that because these are e-money accounts rather than traditional bank accounts, they cannot complete a standard current account switch to alternative providers. The only available option is direct fund withdrawal to a linked UK current account.
Martin Lewis's MoneySavingExpert team continues to monitor the situation and has been actively sharing updates through their official social media channels, including a recent post on X that warned: "Zero plans to keep its app open until Tuesday 31 March, but it's said it can't guarantee this – so it's best to act now."
