Marks and Spencer will charge a monthly fee for its current
accounts, as it plans to launch its banking services by the end of
2012, breaking the traditional mould of UK banks offering free
current accounts.
In June, M&S announced plans to launch an in-store banking
service, backed by HSBC.
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The high street retailer – that will launch its first in-store
bank branch at its flagship Marble Arch store in London – has
announced plans of offering two current accounts – one priced
at £20 ($31.3) per month and the other at £15 per
month.
According M&S, registrations for the
current accounts are now open to customers. The £20 premium current
account will offer travel insurance and in-store benefits worth up
to £658 every year, including £40-worth of vouchers, an automatic
£500 overdraft limit with the first £100 interest-free, and other
benefits such as free hot drinks.
Customers will also be given access to a savings account with a
fixed rate.
The current account without insurance will cost £15 monthly, and
will offer the same banking and reward benefits with the
potential to “gain over £300 worth of annual benefits”, according
to M&S.
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By GlobalDataCEO of M&S Bank, Colin Kersley, said:
“A current account is the natural next step and we have designed
this product with our customers in mind – combining the exclusive
M&S benefits they love, with a transparent account structure
that has no hidden fees.”
The debit card for the premium current
accounts has been designed for M&S Bank by popular designer
Terence Conran, incorporating and celebrating “all that’s
quintessentially British”.
M&S, reportedly, plans to open a total of
50 branches in M&S stores over the next two years, creating 500
jobs by the end of 2013.
M&S Financial Services changed its trading
name to M&S Money in 2003. In 2004, Marks and Spencer sold
M&S Money to HSBC, and operations have been run since as a
joint venture. Over 3m customers already use M&S Money
products, including credit cards, loans and savings.
