The Control Account, which is targeted at less affluent clients and people new to banking, will enable holders to pay a fixed monthly fee of £5 and in return face no extra charges for missed direct debits and standing orders.  

The other products launching today are the ‘free in credit’ Standard Account and  an ‘added value’ Packaged Account offering a range of additional benefits for an £8 monthly fee.

The three accounts, provided by the Bank of Ireland UK, will initially launch in 29 branches in East Anglia before a full roll-out across the network in 2014.

The Post Office announced last month it was entering the current account market, posing a serious threat to the stranglehold of the major high street banks.

Almost three million customers already access Post Office financial services products through a network of over 11,500 branches – more than all the UK banks combined.

Nick Kennett, director of financial services at The Post Office, said: “We wanted to bring a new current account to the market because the Post Office is a different type of financial services provider with a diverse customer base. 

“Consumers tell us they feel penalised by complex and expensive bank charges and fees.  When they go overdrawn they often don’t realise how much it will cost and this can have a real impact on their finances. With the Post Office what you see is what you get – no surprises, just a fair and transparent way to manage your money.”

The launch of Post Office current accounts comes ahead of the new seven day switching regulation to be introduced in September, which will make it easier for customers to move from one bank to another.