The new account will be initially launched in some parts of the country over the next few weeks, while a full launch at its 11,500 branches across the UK is expected to happen by 2014.
Post Office financial services director Nick Kennett said, "We’ve carried out extensive research into the current account market and the findings tell us that customers want simplicity, transparency and good value for money."
"The Post Office is undertaking a significant transformation, providing more and more essential services to our customers across mails, government and financial services."
Introduction of the new account is part of Post Office’s strategy of growing its financial services offering and providing customers with an option to service all their financial needs under one roof.
Managing 2,100 ATMs, the Post Office also offers savings accounts, mortgages, motor, home and life insurance, credit cards to approximately three million customers and has savings deposits of almost £17bn in the UK.
