Fees on the M&S bank account have been cut in time for the seven-day switch. But is it worth signing up to?
M&S Bank has cut the monthly fees on its current account in an attempt to lure in new customers now the 7-day switching rules have come into force.
The price of its Premium Current Account without travel insurance has been cut from £15 to £10, while the account with travel insurance is now £17.50, down from £20.
Monthly fee drop
The M&S Bank was launched last year and is focused primarily at customers of the high street shop. In exchange for a (now reduced) monthly fee, customers have access to a range of discounts and vouchers which it says are worth up to £582 per year.
Along with the normal current account service, they can also access the M&S regular savings account with a rate of 6% which you can put £250 into each month.
There is also a £500 overdraft. And when shopping with the M&S debit card, you will earn reward points. There's one point for every £1 spent.
The 7-day switch
As of this week, switching your current account will take no longer than seven days thanks to the new Current Account Switch Service.
At the moment switching your current account can be a lengthy and stressful process. Because of this few people do it. But thanks to the new rules, the bank you're moving to will now be in charge of moving over your money and any direct debits to a new account, within seven days.
You can learn more about it in our article How to switch your current account in 7 days.
The alternatives
The current account market is vast and there are numerous different options to choose from. That's particularly true when looking for packaged accounts, such as the M&S bank account.
These accounts offer a package of extras in return for a monthly fee.
The extras on offer can include anything from film passes and National Trust membership to in-credit interest and commission-free spending.
When picking a packaged account, it’s important you go for one where you’ll actually use most, if not all, of the benefits on offer. If you don't use all of them, chances are you'll be wasting your money.
Here are some of the top packaged current accounts on the market today.
|
Account |
Fee |
Overdraft rate |
Benefits |
|
£10 a month |
£100 fee-free limit |
3% interest on balances up to £2,500, commission-free cash withdrawals abroad. |
|
|
£10 a month |
£10 fee-free buffer, 19.89% after this |
European travel insurance, mobile phone insurance, LoveFilm membership, HMVdigital download subscription, identity theft assistance. |
|
|
£16 a month |
£10 fee-free buffer, 19.24% afterwards |
Worldwide travel insurance, mobile phone insurance, UK car breakdown cover, Two family passes for the National Trust, Tastecard membership. |
|
|
Halifax Ultimate Reward Current Account |
£15 a month |
£50 fee-free buffer, £1 a day from £300.01 to £1,999.99, £2 a day up between £2,000 to £2,999.99 and £3 a day over £3,000 |
Travel Insurance, AA breakdown cover, mobile phone cover, home emergency cover, card protection |
|
£7.50 a month |
Fee-free buffer of £200, 19.3% afterwards |
Mobile phone insurance for two phones, gadget cover up to £750 |