M&S' new premium current account goes live

The M&S Premium Current Account officially goes live today.

Michael Ossei, personal finance expert at uSwitch.com, says: "Today, M&S customers will be able to add a bank account to their shopping basket, as the high street giant finally enters the banking arena with its first current account. And with eight in ten consumers (80%) saying they would consider switching to a new provider and a third (33%) saying they'd like to bank with a company that offers other useful services such as grocery shopping, M&S is perfectly placed to take on the high street banks. 

"With a good heritage and fiercely loyal customers, M&S will hopefully build on its great brand values to bring trust to at least some of the banking sector.  And with the account rewarding loyalty, there are even better benefits for those who shop with M&S regularly and perhaps hold an M&S credit card.

"However, while the move will give consumers the convenience of shopping and banking in the same place, and with a brand they feel strongly affiliated too, it remains to be seen whether or not the price tags of £240 a year for the Premium Current Account with insurance or £180 a year for the Premium Current Account without insurance are too steep. Although M&S Bank claims the benefits are worth over £500, the perks are very much geared towards existing M&S customers - if you don't shop regularly with them, you won't make best use of the benefits and could end up over-paying for your account. 

"What is clear though is that this is more than just M&S dipping a toe in the banking water. The retailers have spotted a great opportunity and have the customer base and brand clout to take the banks on. This will benefit consumers, but the banks could end up with a bloody nose."