An Post is planning to take on the pillar banks with the launch of an new current account product, which will offer customers debit cards, full access to ATMs and point-of-sale facilities.
The company's new Smart account, which will be available across its network from later this year, will provide account holders with a debit card, which can be used across the MasterCard network.
Customers will also be offered a significant reward scheme on a range of products and services from groceries and clothing to electricity and insurance, which An Post said could save families up to €660 a year.
The decision to offer a more enhanced current account product comes amid a strategic review of An Post, which has been struggling to cope with the decline in traditional mail services.
The new account, which puts put it in direct competition with retail banks, is targeted at the 1.7 million customers who use the post office network each week.
Users will be able to lodge, withdraw or check a balance at Post Office branches but accounts will also be accessible online or via a Smart account app.
Maintenance charge
The account will have a monthly maintenance charge of €5 attached to it, which includes unlimited point of sale transactions at retailers and online within the euro zone and one weekly cash withdrawal at a Post Office.
"The An Post Smart account was built with consumers' needs in mind by creating a simple concept which is easy to use and can generate significant savings through MoneyBack," An Post's director of retail operations John Daly said.
He said An Post various partnerships, which include Lidl, SSE Airtricity and Intersport Elverys, were elected to maximise opportunities and to generate savings by ensuring "they include retailers in the major areas of household spend such as groceries, utilities, clothing and sportswear".
“ Roll-out has commenced in our branches and the product will be available nationwide over the coming months,” Mr Daly said.
Consumer advocate John Lowe said: "The new An Post Smart account is a simple and transparent current account which allows shoppers to earn actual money back and not just points on a broad range of products and services that customers buy regularly."
