M&S Bank cuts current account fee by £5 The price cut and offer comes just days before the Current Account Switch Service is launched, on Monday. This is an agreement drawn together by the industry to guarantee customers can transfer current accounts, hassle-free within seven working days. Find out more Colin Kersley, chief executive of M&S Bank, said: "The introduction of the Current Account Switch Service is arguably the biggest change the current account market has ever seen and we expect to see a significant increase in switching across the industry. Having the right bank account can make a huge difference, so it's important consumers do their research and find the account that fits their lifestyle; whether that's banking at a time that suits them, an interest-free overdraft, or perks and rewards. M&S openly admits its Premium Current Account (with insurance or without) is really only worthwhile for those who regularly shop at the store. That's because account holders will earn various benefits. Using an M&S debit card, customers will earn loyalty points on purchases, a birthday gift worth £10, £40 a year in M&S vouchers, but which can only be spent on clothing and homeware. They also receive 48 hot drinks vouchers for the M&S Café and four treats and delights vouchers worth £45. Calculating the benefits can be complicated. Current account holders will earn M&S loyalty points which every quarter will be exchanged into reward vouchers. Customers earn one point for every £1 spent at M&S using their debit card. The M&S debit card effectively works like a 1pc cashback card as one hundred points will give you £1 in M&S vouchers, so if you spend £200 in M&S stores each month - £150 on food and £50 on clothes, for example - current account holders will earn £2 in vouchers. This excludes any purchases made elsewhere with the debit card. You can get even more if you did the spending on the M&S credit card which pays triple points to Premium Current Account holders, so spending of £200 a month would equate to 600 points, or £6. With customers also getting £50 for opening an account, another £50 if they switch from another bank, and £40 worth of M&S vouchers a year, current account holders can get over £150 of vouchers in the first year, as well as the café vouchers. This would outweigh the £120 a year cost of the account in the first year. Is it worth getting a Premium account with insurance? For an extra £7.50 a month - or £90 a year, current account holders can get worldwide multi-trip family travel insurance. The insurance is comprehensive, offering winter sports cover, 45 days' cover per trip, and up to £5,000 per person if the holiday is cancelled. According to comparison site confused.com, for £79.68 a year, Big Blue cover provides the cheapest worldwide multi-trip travel insurance for four family members, but the policy is slightly less comprehensive - for example it will cover £750 for personal baggage, while M&S Bank covers up to £2,000. Big Blue covers holiday cancellation or curtailment up to £1,000, while M&S Bank will cover up to £5,000. So, for an extra 86p a month, it could be beneficial to to get a Premium current account with insurance if, of course, you are likely to need it. Kevin Mountford, head of banking at Moneysupermarket.com, said: "With the 7-day switch service looming banks will no doubt be looking closely at their offering with a view to enhancing both product & service either as a defensive measure or in order to take advantage of the new switching process. It is clear that the M&S packaged offer is aimed at the regular M&S shopper and if used properly it offers value so no doubt they will be hoping that the reduction in fee attracts a greater number of their retail customers to the bank. More details: M&S Premium Current Accounts