Post Office bank plans outlined by government

[TrueBlueTerrier]

http://news.bbc.co.uk/1/hi/business/8389973.stm" onclick="window.open(this.href);return false;

Plans for the Post Office to start offering financial products have been outlined by the government.

There will now be a public consultation on the plans, which include offering access to accounts from every one of the Post Office's 11,500 branches.

The plan, which also includes the provision of mortgages, requires investment of up to £1.7bn by 2011.

The changes would turn the Post Office into "a leading player in financial services", the government said.

Wide network

"The Post Office is a great British institution that has been part of our economic and social fabric for well over 300 years," said Business Secretary Lord Mandelson.

"Growing financial services at the Post Office will help secure the future of the network and give people access to a full range of banking products at an institution they trust and value."

He added that the Post Office had more branches than all the High Street banks combined.

The government plans include:

* Current accounts accessible from any post office branch
* Children's savings accounts
* Business accounts
* Weekly budgeting accounts that ring-fence a proportion of income each week to pay bills
* Closer links with credit unions
* Working to ensure that all bank current accounts can be accessed via the Post Office.

"Our consultation outlines exciting proposals, but I want people to have their say," said Lord Mandelson.

Information on the consultation will be available in all branches of the Post Office.

'Turning point'

The consumer group Consumer Focus welcomed the government's plans.

"A greater role in financial services for post offices would benefit all post office users, but could particularly help low-income customers, small businesses, and those is rural and deprived urban areas where there are fewer banks.

"[The plans] could be a turning point in delivering a secure future for the Post Office network."

In October, Royal Mail, which operates the Post Office, was hit by strike action, with workers walking out in a dispute over job losses, pay and working conditions.

The government has outlined plans to part-privatise Royal Mail

[norbert]

The Guardian have run a story today about a partnership with the Bank of Ireland

http://www.guardian.co.uk/" onclick="window.open(this.href);return false;

Under More News on Left - 2nd one down - can't get link to work , sorry no copy and paste with my OS & Browser

[DGP1]

Does Girobank ring any bells

[norbert]

Does Girobank ring any bells

The Lord of Darkness being involved that's interesting - I do remember Thatcher and her true blue pals selling off Girobank .

[cyclemech1]

Does Girobank ring any bells

The Lord of Darkness being involved that's interesting - I do remember Thatcher and her true blue pals selling off Girobank .

Yep, the Bank that Tony Benn set up (1969 I think) to offer banking facilities to people that the 'High Street' Banks didn't want to know.

Strange how things come full circle, isn't it?

I suppose Mandleson will take the credit for this brilliant 'new' idea! :mfo

[wardroom]

Does Girobank ring any bells

The Lord of Darkness being involved that's interesting - I do remember Thatcher and her true blue pals selling off Girobank .

Yep, the Bank that Tony Benn set up (1969 I think) to offer banking facilities to people that the 'High Street' Banks didn't want to know.

Strange how things come full circle, isn't it?

I suppose Mandleson will take the credit for this brilliant 'new' idea! :mfo

Great idea but I do hope he keeps his gruby little mits of it :mfo
The peoples bank eh how long till the bureaucrats get in on the act and spoil it again