M&S bank launches £20 a month current account
Marks and Spencer is opening its first in-store bank branch this week and will launch its first current account this autumn.
M&S bank will make its debut at the retailer’s flagship store in Marble Arch, London, with 49 more branches expected to open over the next two years.
Its current account is targeted firmly at M&S shoppers, offering a number of benefits in return for a £20 a month fee.
The benefits include vouchers to spend on M&S clothing, hot drinks at the M&S cafe, a birthday gift and four seasonal gifts each year.
Customers will earn loyalty points every time they use their debit and credit cards.
Debit card users will receive loyalty points worth 1p for every £1 spent while credit card users will receive 3p for every £1 spent.
The £20 a month current account also includes worldwide travel insurance, but there is also a £15 a month option for customers who do not want to take up the travel insurance offer.
According to M&S, the benefits available with the current account are worth up to £582 a year.
Current account customers will be able to open an M&S savings account offering a fixed rate of 6%.
The popularity of major High Street banks has suffered since the credit crunch and the situation has worsened in recent months with service failures and Libor rate rigging contributing to customers’ disenchantment.
M&S bank is likely to benefit from the retailer’s long-established and trusted high street name when it comes to attracting customers.
However, recent figures from YouGov show that M&S has been elbowed into fourth place in a new league table of the country’s most trusted business names, with online brands stealing the top spots.
Amazon took first place, followed by Google and the BBC iPlayer.