M&S Bank has announced it will terminate all current accounts and close 29 bank branches later this year.
The financial arm of retail giant Marks & Spencer said it will begin to contact current account customers from Wednesday 4 April, informing them of the changes and the options available ahead of the branch closures.
The bank, which currently has three million banking customers in the UK, said its Monthly Saver savings account will also shut in August, along with in-store counters.
Switch to focus on digital banking
M&S Bank have said the move is happening as it switches focus to digital banking.
All current accounts will be shut in August 2021, or sooner, if the customer has a zero balance. Customers who have overdraft charges and outstanding fees will have to repay them.
The bank said the next stage of its transformation programme will be to focus on credit cards and rewards with plans to merge further with its Sparks Card.
What should I do if I have a current account?
M&S Bank said it will begin to contact current account customers from Wednesday 4 April, informing them of the changes and the options available ahead of the branch closures.
Options will include switching to another lender using the seven day Current Account Switch Service, or closing the account indefinitely.
29 bank branches to close
In addition to the current accounts, 29 M&S Bank branches will also close.
The retail chain, which entered the current account market in 2014, did not reveal how many workers would be affected by the closures. However, a spokesperson confirmed staff have today (4 Mar) entered consultation.
From summer 2021, all M&S Bank services will be available online and over the phone.
Paul Spencer, CEO, M&S Bank, said: "As we adapt to meet the changing needs of our customers, and we deliver some new - more digitally-focused products and services – it does regrettably mean we will move away from branch-based servicing and the 29-in-store bank branches and associated current account will close this summer.
"We're now firmly focused on supporting both our customers and colleagues through this change, and the delivery of our transformation plans, which will create new and rewarding payment solutions for M&S shoppers, both in-store and online."