The Post Office has launched its three new current accounts today, two of which carry a monthly fee.
The new bank accounts are being trialled across 29 branches in East Anglia ahead of a nationwide launch in 2014.
Only the Post Office’s new ‘Standard’ account will be fee-free, and it can be opened with an initial deposit of £100.
The ‘Packaged’ account, which comes with European multi-trip family travel insurance, breakdown cover, and identify theft protection, will cost £8 per month.
Customers with either of these accounts can apply for an overdraft facility at any time, which is charged at 14.9%.
The ‘Control’ account, which is a specialist budgeting account and is aimed towards those who need tighter controls over their finances, will cost £5 per month.
Customers with the ‘Control’ account can arrange cheaper tariffs for utility bills by setting up Direct Debit in the knowledge that they will not be charged for failed payments.
The accounts are being issued in partnership with the Bank of Ireland, which has attracted negative publicity in recent weeks for hiking its lifetime tracker mortgage rates via a loophole in the small print (read more).
Infrastructure
With 11,500 branches, the Post Office branch network outnumbers all major high-street banks combined, and is expected to be a popular choice in rural areas and local communities.
But it is keen to monitor the additional strain to its counter services before it rolls out the account, which is expected to compete with major banks, in full across the country.
The Post Office already sports around three million customers for its other financial services, which include credit cards, savings accounts, mortgages and insurance.
Nick Kennett, director of financial services as the Post Office, said that the new accounts would prove an alternative for customers that felt cheated by complex charges associated with their accounts.
"When they go overdrawn they often don’t realise how much it will cost and this can have a real impact on their finances.
"With the Post Office what you see is what you get – no surprises, just a fair and transparent way to manage your money."
Postal Affairs Minister, Jo Swinson, chose to overlook the recent Bank of Ireland debacle, pointing to the trust and confidence that customers had in the Post Office brand.
"The Post Office has always been, and continues to be, a universally recognised and much loved presence on the high street," she said.
"Customers have real trust and confidence in the Post Office and with more branches than the high street banks combined, I welcome the increasing role it is playing in meeting the financial needs of its customers."
She added that the government is dedicating £1.34 billion to maintain and modernise the post office network to enable branches to offer a full range of financial services.
The trial, available in the following 29 branches, will allow the Post Office time to renovate its infrastructure before the complete roll-out next year.
Will you be tempted to switch to the Post Office? Let us know your views on these accounts.
Keith McDonald
Which4U Editor
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