Consumers may soon be able to open a current account at their local Post Office.
The Post Office is examining proposals to launch a basic current account in conjunction with the Bank of Ireland. The move follows on from its successful bid to run the card account for another five years.
A savings account is already available through the Post Office, while the card account scheme allows customers to receive their pensions and benefits, which can be withdrawn free of charge at Post Office branches using a card and a PIN number.
Now, plans are underway to extend these offerings and introduce a simple current account - a step that government ministers are believed to support as it would help to revitalise the Post Office network and strengthen its social role within communities.
According to the Financial Times, the news comes after business secretary Lord Mandelson wrote to prime minister Gordon Brown suggesting that the number of financial services offered by the Post Office be widened.
"We should examine the prospects for Post Office Ltd becoming a much more significant player in financial services - offering a wider range of attractive products within easy reach of the whole population," the letter reportedly read.
When announcing last week that the Post Office was to keep its contract to run the card account, work and pensions secretary James Purnell insisted the government would do nothing to put the network at risk.
Compare current accounts via money.co.uk
