Post Office to launch its own current account

The Post Office is to launch a new current account this spring.

The new service, which the Post Office says will offer customers greater accessibility through the UK’s largest branch network, will initially launch in a small number of branches before a wider roll-out in 2014.

Almost three million customers already access Post Office financial services products through a network of over 11,500 branches.

The Post Office has a savings book of £17 billion and a range of products, including savings accounts, mortgages, motor, home and life insurance, credit cards and 2,100 ATMs.

When asked whether the new service would offer the same level as functionality as high street bank current accounts, a spokesperson said no more details would be revealed for some months.

The Post Office could neither confirm whether the new product would be available for those on benefits, or whether it had been designed to work alongside the government's new Universal Credit welfare system.

Nick Kennett, the Post Office's director of financial services, said: “This is very exciting news for the Post Office and we are absolutely delighted to announce that we are going to launch a current account. We’ve carried out extensive research into the current account market and the findings tell us that customers want simplicity, transparency and good value for money. With over 11,500 branches, which is more than all the UK banks combined, we can provide this through the most convenient and accessible retail network in the UK.

“The Post Office is undertaking a significant transformation, providing more and more essential services to our customers across mails, government and financial services. The introduction of the current account is a further statement of this ambition.”