The Post Office is to launch a current account, debuting in spring 2013; initially in a small number of Post Office outlets before a wider branch out in 2014.
Nearly 3m customers use Post Office financial services at 11,500 branches; it also hosts 2,100 ATM machines in the UK.
Nick Kennett, director of financial services, Post Office 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. With over 11,500 branches, which is more than all the UK banks combined, we can provide this through the most convenient and accessible retail network in the UK."
The Post Office offers a range of products, including savings accounts, mortgages, motor home and life insurance, credit cards and currency exchange.
Full details will be announced over the coming weeks.