Post Office Bank plans unveiled
The Labour government has announced a major expansion of the financial services offered by the Post Office as part of a £180 million investment in the organisation, creating a ‘People’s Bank’.
The plans are set to put banking back into the heart of communities and build on the Post Office network’s existing expertise in savings, insurance, credit cards, loans and currency exchange.
This will open up a range of good value financial products for everyone, and is a major step in the creation of sustainable neighbourhood banking service through the Post Office.
A range of products have been developed to benefit the general public. The government has worked with the Post Office to create a Weekly Budgeting account helping people on low incomes manage their household budgets, as well as new Current and Children’s Savings Accounts.
Furthermore, customers of other banks will now be able to manage their accounts at the Post Office, while Post Office business accounts will be developed alongside a new mortgage product with a 90% loan-to-value ratio aimed at first time buyers will be offered, helping people make their first steps on the housing ladder. In addition, the Saving Gateway account has been launched, aimed at kick-starting the savings habit, with the government adding 50p for every £1 saved.
