UK retailer Marks & Spencer (M&S) will launch its first free current account this summer, targeting the mass market.
The retailer, a household name in the UK, launched two "premium" current accounts in 2012, but both carry a monthly fee and are aimed at regular shoppers.
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The current account will include an overdraft, a rewards scheme, no minimum monthly funding requirement and lower than average charges for withdrawing cash from ATMs abroad.
Consumer experts have commented on the attractive nature of the account, which comes with an automatic overdraft of £500, the first £100 of which is interest free. After this, interest will be applied at a rate of 15.9%.
Fees on withdrawing cash with the M&S debit card abroad are also competitive, consisting only of a foreign exchange charge of 2.75% where many banks apply a transaction fee.
The retailer will also look to tempt the customers of other banks away with a £100 M&S gift card for those who use the UK’s seven day switching scheme.
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By GlobalDataM&S Bank, which is a joint venture between M&S and HSBC, says customers will be able to bank at in store branches already in place at 29 M&S stores across the UK.
A spokesperson told the Guardian M&S Bank "offers the longest opening hours of any high street branch in the UK, including evenings and weekends"
Telephone banking through a UK call centre will also be available, as will online banking.
The retailer becomes the third challenger bank to announce the launch of a current account this year, joining Tesco Bank and Virgin Money.
M&S declined to put a specific date on the launch of the current account, saying only that it would be rolled out this summer, starting with existing customers.
Related articles:
Virgin Money UK on target to launch current account offering
The switching race gathers pace
Tesco Bank opens seven million accounts, to launch new current account in H1
