M&S Bank to close all current accounts from 31 August - so it's your last chance to switch
M&S Bank will close all of its current accounts on 31 August 2021, in a shock move that also resulted in it shutting all 29 of its in-store bank branches on 2 July. But credit card, loans and insurance customers aren't affected – we've full info on what's changing and what you need to do below.
This news story was originally published on 4 March 2021 but it's been updated with the latest info on 24 August 2021.
All M&S Bank current accounts are closing
The following types of account will all close on 31 August 2021:
- M&S Current Account
- M&S Premium Current Account
- M&S Premium Current Account with insurance
- Monthly Saver accounts linked to current accounts
The bank's said the move is due to customers switching to online banking, during the last year in particular. M&S Bank has three million customers in total – it wouldn't give us a figure for how many have current accounts, but it's understood to be 10,000s or 100,000s.
You can start a current account switch on or by 31 August
If you're an M&S Bank customer, you can continue to use your account as normal and view it on internet banking or via the app up until account closure on 31 August. But if you want to switch - and this is likely to be the easiest option for those who regularly use their account - you need to start the process by or on 31 August, as it takes seven working days, with a switch date of no later than 10 September.
You can use the Current Account Switch Service (CASS) to switch to an existing current account you have or to a new current account. This will ensure all your direct debits, standing orders and incoming payments are moved over to your new account.
Top switching picks currently include a free up to £125 to move to Nationwide. Alternatively, you can get a Virgin Experience Day gift card worth £150 if you switch to Virgin Money. See our Best Bank Accounts guide for more info. Once you've switched, your M&S current account will automatically close.
You can switch if you've an overdraft, but it depends on whether your new provider will accept your application. If it won't, contact M&S on 0345 900 0900 to discuss your options – the bank says help offered will vary on a case-by-case basis although it could include a repayment plan, for example. See Top Accounts if You're Overdrawn for more help.
Any requests to switch away from M&S Bank after 31 August will be denied.
If you don't switch, M&S will close your account and post you any funds by cheque
If you have money in your account and don't switch, your funds will be automatically sent to you via cheque after account closure on 31 August. It's unclear how quickly this cheque will arrive, so it may be best to withdraw funds now if you need immediate access.
If you want to close your account yourself, you can do so on or before 31 August. You just need to withdraw any funds and then close the account via the M&S website, although M&S will close it automatically for you on 31 August anyway.
If your account has an overdraft, you'll need to clear this before you can close your account. If you can't, contact M&S on 0345 900 0900 to discuss your options – the bank says help offered will vary on a case-by-case basis although it could include a repayment plan, for example.
Remember, when your account's closed any regular payments will be automatically cancelled, so make sure anyone you make payments to or receive them from has your new banking details.
What to watch out for when your account's closed
The M&S Bank website has full info on how account closures will work, but there are a few key points to watch out for:
- You may still be charged interest and/or fees after your account's closed if you owe money on your closing overdraft balance. M&S Bank says if interest and charges haven't been applied by the time the account's closed, it'll contact you to let you know the amount owed and that you'll need to repay it.
- Your online statements won't be available after the account's closed. So print off or download any statements you may need.
- You'll be emailed your transaction history going back five years once the account has closed. But you need to tell M&S Bank if your email address has changed. You can also request your transaction history for accounts closed within the previous five years if you need it.
- Insurance cover provided with premium accounts will end when accounts close. If you've got an M&S Premium Current Account that comes with travel insurance, this cover will end when your account closes. If you have any future trips booked beyond the closure date and require travel insurance, you will need to make alternative arrangements. If you need to arrange alternative travel insurance in the meantime, see our Cheap Travel Insurance guide for the best buys.
- Some will still be able to use vouchers linked to their M&S Premium Current Account even after 31 August. Premium Current Account holders benefitted from perks, such as hot drinks vouchers worth £132 a year for use in the M&S Café and vouchers worth £40 a year to spend on clothing and homeware. Any vouchers will remain valid until their expiry date, while hot drinks vouchers with an expiry date that's between 31 May 2020 and 31 May 2021 have been extended until 31 December 2021.
Interest on your Monthly Saver will be paid for the full 12-month term
If you had M&S Bank's Monthly Saver linked to your current account and it closes before maturity due to the changes, the bank says it'll automatically assume a maximum contribution of £250 has been made in each remaining month to calculate your interest.
For those who've already switched or who plan to switch away from M&S Bank on or before 31 August via CASS, the Monthly Saver will be closed and the balance credited to your M&S Bank current account, with the combined balance then transferred to your new provider as part of the switch.
If you didn't switch and your M&S Bank current account is still open on 31 August, your Monthly Saver balance will be credited to your current account, and the total amount sent to you as a cheque. You also have the option to transfer your Monthly Saver funds to M&S Bank's Everyday Savings Account (ESA) if you also hold one of these.
For those who didn't switch but who closed their M&S current account themselves before 31 August; your monthly saver balance will have been automatically transferred to whatever balance was in your current account upon its closure, with the total amount sent to you in the form of a cheque.
Insurance, loan and credit card customers AREN'T affected
The shake-up only impacts current account customers and those with M&S Bank's linked Monthly Saver. This means customers with the following products are not affected:
- Credit cards
- Insurance products
- Savings other than the Monthly Saver linked to current accounts
- Travel money service (M&S Bank's 100 travel bureaux will remain)
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