Marks & Spencer will launch a new, no-fee current account to complement its two existing premium accounts this summer.
The supermarket banking brand plans to win over customers who aren’t regular customers by offering ‘transparent’ fee-free banking and ‘great’ customer service with its M&S Current Account.
Amongst the account’s benefits is an automatic £500 overdraft – the first £100 of which is interest free and the remainder chargeable at 15.9% EAR.
For an account-holder at their £500 limit for two weeks of every month, the annual cost of borrowing would be a competitive £26 per year.
If it was currently available, this would land it in the Which? Best Rate table for unauthorised overdrafts, below First Direct (£17) and Clydesdale and Yorkshire Banks (£22).
Unlike many rival accounts, the M&S Current Account won’t charge a withdrawal fee for overseas use of its debit card. However, it will apply a 2.75% foreign exchange charge.
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Customers will earn loyalty points on debit card spend, whilst those who switch over their everyday banking and standing orders to the account will receive a £100 M&S gift card.
On initial launch, only existing M&S customers will be eligible for the account, but the bank plans to later roll out availability more widely.