Post Office launches £100 incentive to switch current account
It follows hot on the heels of The Co-operative Bank and Nationwide, which both launched ‘golden hello’ incentives earlier this month.
The Post Office entered the current account market in May 2013 with three products including an ‘inclusive’ offering designed specifically for lower income customers.
The wave of offers follow the introduction of new seven day current account switching rules last autumn, which make switching providers quicker and easier.
Charlotte Nunes of uSwitch.com said the offer shows the Post Office wants to be a serious player in the current account market.
“The Big Four – Barclays, HSBC, Lloyds and RBS – have so far retained the lion’s share of the current account market thanks to their hefty advertising budgets,” she said.
“It’s high time that new players like the Post Office stepped up to win customers. It would be good to see other contenders such as TSB, Tesco and Metro Bank follow suit. Consumers have everything to gain by switching their current account with these cash incentives on offer, as well as interest rates of up to 5%. Plus, the Post Office is a brand consumers know and trust.”
However, Kevin Mountford, head of banking at MoneySupermarket, warned current account consumers not to be seduced by ‘golden hello’ incentives.
“If the product is right for you, then by all means take out the account. But look beyond the marketing message. These incentives prove that the industry is hungry for our business so consumers should look for accounts offering the best value for money,” he said.
The Post Office current accounts are now available in more than 100 branches after its pilot scheme was extended to include 81 more branches across the East Midlands and the east of England in January.
The Post Office has a network of more than 11,500 branches, more than all the banks combined. It hopes to offer current account in all branches by the end of this year.