M&S has unveiled its much-awaited current account which will be available from October, but it will be hugely expensive for customers who don't shop regularly at the store.

The account comes with either a £15 monthly fee (£180 a year) or, for those who want travel insurance, a £20 monthly fee (£240 a year).

M&S Bank, the financial arm of the retail giant, freely admits the account, which comes with a range of in-store discounts, is only suitable for regular M&S shoppers. Anyone can register for the account today.

The department store says it has 12 million regular shoppers, with 21 million visits a week.

It promises a high level of customer service and no overdraft fees, even for those who exceed their limit, though they won't be allowed to where a retailer seeks authorisation. Customers will only pay a 15.9% annual interest rate.

The bank's first branch will open on Thursday inside M&S's Marble Arch store in London. For now, it will offer M&S Bank's current services which include a credit card, foreign currency and savings accounts.

It plans to open 50 branches by the end of next year, all in department stores.

What do you get per year?

  • Worldwide family annual multi-trip travel insurance for you, your partner (up to age 70) and any children or grandchildren travelling (if you choose the travel insurance bundle).
  • An automatic £500 overdraft, of which the first £100 is interest-free.
  • Two £20 M&S store vouchers.
  • New customers get 20% off clothes and homeware (not furniture or electricals) every month (maximum £250 spend per month) for the first year.
  • One M&S point for every £1 spent on the debit card. Points can be spent in stores.
  • Access to a 6% regular savings account.
  • A birthday gift worth £10.
  • Four 'treats and delights' gifts, worth £45.
  • 48 M&S Cafe hot drinks vouchers (worth £127).

To get all the benefits, you must deposit at least £1,000 a month.

Colin Kersley, M&S Bank chief executive, says: "A current account is the natural next step for M&S and we have designed this product with our customers in mind, combining exclusive M&S benefits they love with a transparent account structure that has no hidden fees."