Number of PO branches offering current accounts to double

[TrueBlueTerrier]

Number of Post Office branches offering current accounts to double

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The Post Office is to double the number of branches offering current accounts, following a year-long pilot scheme carried out in 110 outlets across the East Midlands and east of England.

An extra 76 branches are now offering access to the organisation's range of three accounts, and by the end of September the number in the scheme will rise to 239.

Customers can choose from a standard account that gives free in-credit banking and an overdraft rate of 14.9% EAR, the "control account" which costs £5 a month with no extra charges for unpaid standing orders and direct debits, and a packaged account costing £8 a month, which comes with travel and breakdown insurance.

All of the accounts, which are run through a partnership with Bank of Ireland, can be set up with a deposit of £20. Initially they must be opened in a participating branch but after that can be run online or through any Post Office.

The Post Office began the pilot in May 2012, ahead of the new current-account switching rules that make it quicker and easier for consumers to move between providers.

Since it introduced the accounts, competition has heated up in the market, with Tesco recently launching an account, TSB releasing a new deal following its demerger from Lloyds, and Marks & Spencer overhauling its range.

The Post Office would not disclose how many accounts had been opened during the pilots but said it was described its products as "a real challenger [to] the high-street banks". John Willcock, head of current accounts at the Post Office, said: "The demand for all Post Office current accounts has been very positive and we are now in a good position to extend the pilot to more branches across the UK."