Post Office Account

The Standard Account is a straightforward current account that offers free everyday banking with no hidden charges. The Post Office offers the usual necessities of a current account, such as:

• Visa debit card with contactless payments and a cheque book
• A competitive overdraft 14.6% EAR
• Management of your account online, in-branch, over the phone and by mobile
• Setting up Direct Debits and payments

The Post Office is also offering a basic account, called Control which is aimed at people who have previously had trouble with hefty overdraft charges or are trying to stay in control of their finances.  It comes with a full banking service, including a debit card.

Control can protect account holders from unexpected bank charges and from accidentally going overdrawn but costs £5 a month. Some other banks offer this service for free so it's worth checking if there might be a better option.  

The standard account is for those who want something straightforward and free, provided you stay in credit. You get a debit card and can request a chequebook and apply for an overdraft. You can bank in the standard ways, such as: online, at cashpoints ,on the phone or over the counter.

Overdraft

The Post Office overdraft has a great overdraft option. They maintain that their accounts have a simple overdraft structure with a competitive overdraft interest rate. Rather than having a range of overdraft fees and charges the Post Office has chosen to launch a simple charging structure, with authorised overdrafts costing 14.9% EAR. They don’t have any unauthorised overdraft charges and only charge a £15 fee for payments that are rejected.

On their website they give the representative example: ‘Based on an overdraft limit of £1,200 used in full for a one month period where the variable rate of interest is currently 13.72% per annum, the total charge for credit would be £13.72.’

The Post Office account is has the advantage of a huge network of more than 11,500 branches which is more than all the main UK banks combined. This means you should always be able to find a branch local to you which is very convenient especially for those living in more rural areas.

Overall this is a great standard account with an attractive overdraft rate and plenty of branches. It does not provide interest on your money however, which could be an issue for savers.