M&S Bank today announces that its first free current account is now available for applications. Commenting on this, Jafar Hassan, personal finance expert, at Uswitch.com, says: “This is not just any current account. This is the M&S current account. Whether it will be a credible threat to high street banks remains to be seen, but it certainly has the potential to shake up the retail banking industry.
“With Sainsbury’s and Tesco focusing on online banking and traditional banks actually closing down branches on the high street, M&S is offering customers the chance to bank and shop under one roof. The ability to manage your money at an M&S store could be very appealing to loyal shoppers, especially with many branches open in the evenings and at weekends.
“As well as being offered face-to-face banking, customers will receive loyalty points when they spend on their debit card, plus the added sweetener of an £100 gift card when they switch. They will also benefit from an automatic £500 overdraft, although only the first £100 is interest-free – compared to First Direct’s 1st Account, where the first £250 is interest-free. People happy to do their banking online or over the phone should also consider accounts such as Nationwide’s fee-free FlexDirect, which offers in-credit interest of up to 5%.
“We’ll wait and see whether this new account from Marks sends sparks flying. But with this account almost open for business and more to come from other retailers such as Tesco and Sainsbury’s, it’s clear that the dominance of the Big Four is being seriously challenged.
“Ultimately, a new current account means more choice and increased competition. It will be interesting to see if some of the larger players start upping the ante in the next few months in an attempt to prevent customers from switching.”
Charlotte Nunes
Phone: 020 7148 4664
Email: charlotte.nunes@uswitch.com
Twitter: @uswitchPR
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Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.
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