Post Office bank moves a step closer
29 March 2010 / by Andy Davies
The Post Office will see a “major expansion” to the financial services it offers after the Government announced plans to inject £180million of new funding to make its network of 11,500 branches more sustainable.
Unveiling the plans which will include new accounts, business services and mortgages, business secretary Lord Mandelson hoped the move would help create a system that is “fairer, trusted, and more responsible”.
“The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities,” he said.
Under the plans to expand the Post Office’s banking services, consumers will soon be able to open their own Post Office Current Account, while a weekly budgeting account designed at helping people on low household incomes to manage their finances and save has also been proposed.
Ed Miliband, energy secretary says that this type of account will enable people to get discounts on their utility bills.
“Paying bills by direct debit often means a discount on bills of nearly £100 a year. This new account will mean some of the consumers who have to pay higher fuel bills can benefit from that discount and manage their energy bills better,” he said.
Meanwhile, consumers will also be able to access current accounts from other providers with ‘detailed negotiations’ already taking place with RBS and Santander, which could potentially mean that 86 per cent of all current accounts would be accessible through the Post Office.
In addition, the Post Office is set to offer a new mortgage deal aimed at first time buyers offering 90 per cent LTV (loan-to-value), while also increasing its business services by allowing Santander business customers to access their accounts through any of its branches.
Commenting, Pat McFadden, business minister said: “The Post Office can provide a range of good value, simple financial products for everyone. These are the clear messages that people have given us and we are acting on them – a major step towards making the Post Office a sustainable neighbourhood banking service.”
© Fair Investment Company Ltd
| Provider | Account | Set Up Fee | Fee per month | Features | Apply |
|---|---|---|---|---|---|
 |
CardOneBanking Managed Account | N/A | £12.50 | No credit checks.** Prepaid MasterCard. No account opening fee. | More Info > |
 |
ClearCash Account | £4.95 | £9.95 | No credit checks**. Prepaid MasterCard. Credit Building facility. | More Info > |
 |
CashPlus Prepaid MasterCard Deluxe | £4.95 | £9.95 | No credit checks.** Up to 20 free payments and standing orders a month. Prepaid MasterCard. | More Info > |
**See Terms and Conditions
| Provider | Account | Set Up Fee | Fee per month | Features | Apply |
|---|---|---|---|---|---|
|
CardOneBanking Managed Account | N/A | £12.50 | No credit checks.** Prepaid MasterCard. No account opening fee. | Apply Now > |
|
CashPlus Prepaid Mastercard (Deluxe) | £4.95 | £9.95 | No credit checks.** Up to 20 free payments and standing orders a month. Prepaid MasterCard. | Apply Now > |
| Account | Interest (AER) | Overdraft Rate | Funding Required* | Fee pm | Features | Apply | |
|---|---|---|---|---|---|---|---|
 Nationwide » |
FlexDirect Current Account | 5.0%* | 0% for 12 months | £1,000 per month | N/A | 5.0% IN-CREDIT INTEREST on balances up to £2,500 for the first year. | More Info > |
Nationwide » |
Nationwide FlexPlus Current Account | 3.0%* | 0% for first £250 | No minimum | £13 | 3.0% INTEREST on balances up to £2,500 | More Info > |
 Santander Bank » |
Santander 123 Current Account | 1.50%* | Up to £3 per day | £500 per month | £5 pm | *1.50% AER (variable) on your entire balance up to £20,000. Up to 3% cashback on household bills. | More Info > |
Nationwide » |
Nationwide FlexAccount Current Account | N/A | 0% for first 3 months | No minimum | N/A | 3 months interest-free overdraft and no monthly account fee | More Info > |
 First Direct » |
1st Account Current Account | N/A | 0% for first £250 | No minimum | Free if funding £1,000 or £10 below £1,000 | Switch your current account and you’ll get a free gift worth up to £150. £250 interest free overdraft. Free banking if paying over £1,000 per month. Satisfaction guarantee – £100 if you leave within 6 months | More Info > |
| Account | Interest (AER) | Overdraft Rate | Funding Required* | Fee pm | Features | Apply | |
|---|---|---|---|---|---|---|---|
Nationwide » |
FlexDirect Current Account | 5.0%* | 0% for 12 months | £1,000 per month | N/A | 5.0% IN-CREDIT INTEREST on balances up to £2,500 for the first year. | Apply Now > |
Santander Bank » |
Santander 123 Current Account | 1.50% AER* | Up to £3 per day | £500 per month | £5 pm | *1.50% AER (variable) on your entire balance up to £20,000. Up to 3% cashback on household bills. | Apply Now > |
| Account | Interest (AER) | Overdraft Rate | Funding Required* | Fee pm | Features | Apply | |
|---|---|---|---|---|---|---|---|
|
Nationwide FlexDirect Current Account | 5.0%* | 0% for 12 months | £1,000 per month | N/A | 5.0% IN-CREDIT INTEREST on balances up to £2,500 for the first year. | More Info > |
|
Nationwide FlexPlus Current Account | 3.0%* | 0% for first £250 | No minimum | £13 | 3.0% INTEREST on balances up to £2,500 | More Info > |
|
Santander 123 Current Account | 1.50%* | Up to £3 per day | £500 pm | £5 pm | *1.50% AER (variable) on your entire balance up to £20,000. Up to 3% cashback on household bills. | More Info > |
| Account | Interest (AER) | Overdraft Rate | Funding Required* | Fee pm | Features | Apply | |
|---|---|---|---|---|---|---|---|
 |
Student Bank Account | N/a | £500 Interest Free increasing to £2000 | No minimum | N/a | Choose 1 of 3 great offers: Amazon Prime Student subscription, National Express Coachcard, or Tastecard | More Info > |
|
FlexStudent Bank Account | 1% | Overdraft limit of £1,000 increasing to £3,000 in year three | £500 every academic term | N/a | The UK’s only fee-free student current account. Interest-free and fee-free overdraft | More Info > |
|
123 Student Current Account | Up to 3% | £1500 Interest Free increasing to £2000 | £500 every academic term | N/a | A free 4-year Santander 16-25 Railcard which could save you 1/3 off rail travel in Great Britain | More Info > |
$(document).ready(function(){ $("#ctl13_GeneralComparisonTabsTable1_divTablesWraper .comparison_table_tabs_container a").click(function(){ var $this = $(this); var TableStyle = ''; var $tab;
if (TableStyle=='uswitch') $tab = $this.parent('li'); else $tab = $this.parent('div').parent('div').parent('td');
var $activeTab = $('#ctl13_GeneralComparisonTabsTable1_divTablesWraper .comparison_table_active_tab');
if ($tab.attr('class')=='comparison_table_active_tab'){ return false; }
$activeTab.removeClass('comparison_table_active_tab'); $activeTab.addClass('comparison_table_inactive_tab');
$tab.removeClass('comparison_table_inactive_tab'); $tab.addClass('comparison_table_active_tab');
$('#ctl13_GeneralComparisonTabsTable1_divTablesWraper .TableTabDiv').hide(); $('#ctl13_GeneralComparisonTabsTable1_divTablesWraper #' + this.className).show();
return false; }); });
function openFactSheet(url) { var w = window.open(url, '', 'width=1000,height=800,scrollbars=yes,resizable=yes'); w.focus(); }