18/07/2012

M&S Current Account To Cost Up To £20 A Month

Following the recent announcement that retailer Marks and Spencer was to launch an in-store banking service, it has now been said that users of its first current account will be charged a monthly fee of up to £20. A number of traditional banks offer "packaged" bank accounts, which also carry a monthly fee.

The Financial Services Authority (FSA) says one in five UK adults have such a packaged account.

But it says some consumers are being sold accounts that they may not need, and has made proposals to tighten up sales of these types of accounts.

The Office of Fair Trading has also announced a review of personal current accounts offered by banks, looking into transparency and competition.

Customers can pre-register for M&S Bank current accounts now, and they will become operational in the autumn.

For £20 a month, the premium current account offers insurance and in-store benefits. Customers will also be given access to a savings account with a fixed rate of 6%.

A similar account without insurance costs £15 a month and comes with similar banking and rewards and a lower amount of potential benefits.

The accounts have an automatic £500 overdraft, with the first £100 interest-free.

The first M&S Bank branch is opening at the group's flagship store at Marble Arch in London.

(H)

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