An announcement has recently come out of Marks & Spencer which will mean that customers who have a current account with the bank are going to have to pay on a monthly basis. This breaks with tradition on the high Street the current accounts are a free service.
There are some banks which charge on a monthly basis for the use of their current accounts, but it is the case that they do have a free option as well. Marks & Spencer is going to be unique because they are the only company you do not offer a free alternative. The current account is going to cost consumers £15 a month, or £20 if they want insurance to be a part of the deal.
That said, those who take advantage of the accounts are going to be entitled to an overdraft worth £100 completely interest-free. They are also going to get a savings account with a high rate of interest as well as being entitled to various exclusive discounts in the store.
It is thought that the paid for current account is going to attract people who have become disappointed with the traditional high-street banks ever since the credit crisis began in 2008. People are generally become angry about the state of executive pay at these banks and Marks & Spencer are planning to offer an alternative to the high Street.
The company sees over 20 million customers coming to its stores every week and it is estimated that over the next 24 months they are going to be opening 50 banks in their branches across the country. The first of these banks is going to be opening in London later this month. The company are going to be marketing the accounts based on their well-known values.