Five questions answered on the Post Office’s new current account service

When does it start?

It has been revealed that the Post Office plans to offer current accounts in the UK. We answer five questions on this new service.

Why has the Post Office decided to start offering current accounts to its customers?

Earlier in the year it was highlighted by a regulator that the market is dominated by few providers – most notably, by Lloyds, RBS, Barclays and HSBC, which make up 75 per cent of the market – resulting in a lack of choice for customers.

The Post Office has decided to enter the market to offer ‘simplicity, transparency and good value for money’, according to its director of financial services, Nick Kennett.

Doesn’t the post office already offer some financial services?

Yes, currently, at its 11,500 branches, the Post Office already offers savings accounts, mortgages and insurance policies in collaboration with the Irish Bank.

What details have the Post Office released about its new current account?

Very little at the moment. However, we do know that the service will be launched with the Irish bank and that is will be rolled out in some stores over the next few weeks, with more offering the service next year.

Kennett did tell the BBC: "We have carried out extensive research into the current account market and the findings tell us that customers want simplicity, transparency and good value for money.”

What are the experts saying?

Experts are very positive about the new current account. Rachel Springall, spokeswoman for financial information service Moneyfacts, speaking to the BBC said: "The Post Office has a good High Street presence, perfect for people who prefer the more personal branch banking. It will be interesting to see whether this account will be as transparent and simple in structure as they suggest.”

While, Kevin Mountford, head of banking at comparison website Moneysupermarket, added: “I expect this account will be very popular."

What other new entrants into the banking sector have there been in the last few years?

Metro Bank launched in 2010 and M&S Bank in 2012 , while Tesco Bank has announced it will launch an account soon. However, according to the Office of Fair Trading, none of these banks are yet in a position to challenge the big four.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Photo: Getty
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Cabinet audit: what does the appointment of Liam Fox as International Trade Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for International Trade.

Only Nixon, it is said, could have gone to China. Only a politician with the impeccable Commie-bashing credentials of the 37th President had the political capital necessary to strike a deal with the People’s Republic of China.

Theresa May’s great hope is that only Liam Fox, the newly-installed Secretary of State for International Trade, has the Euro-bashing credentials to break the news to the Brexiteers that a deal between a post-Leave United Kingdom and China might be somewhat harder to negotiate than Vote Leave suggested.

The biggest item on the agenda: striking a deal that allows Britain to stay in the single market. Elsewhere, Fox should use his political capital with the Conservative right to wait longer to sign deals than a Remainer would have to, to avoid the United Kingdom being caught in a series of bad deals. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.