THE Post Office is to launch its own current account in a move that could benefit rural communities without a regular bank.

Some bank customers can already access financial services via the Post Office but the new account aims to benefit many more rural residents.

It would make the Post Office one of the largest providers of financial services on the high street.

Initially launching in a small number of Post Office branches during Spring 2013, the new service will be rolled out more widely during 2014

It aims to provide greater accessibility for customers through the UK's largest branch network with increased opening hours

Almost three million customers already access Post Office financial services products through an unrivalled network of over 11,500 branches.

The introduction of the current account is the next step in the Post Office's strategy of growing its financial services, enabling customers to access all their financial needs under one roof.

Director of Financial Services Nick Kennett said the move would help the Post Office meet its aim of providing more essential services to customers.

"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," he said.

"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.

For many rural communities the post office is the only retail outlet – some 99.7% of the total population live within three miles of a post office.

Michael Ossei, personal finance expert at uSwitch.com, said a Post Office current account could make life a lot easier for rural communities hit by local bank branch closures.

He said: "It will be particularly welcomed by those in rural areas as well as vulnerable groups such as the elderly that find it hard to get to a bank."

The Communication Workers Union (CWU) welcomed the current account but said it was a shame the opportunity was missed to launch a true publicly-owned Post Bank.

CWU general secretary Billy Hayes said: "It's a well-overdue development which will help to bring greater access to banking to many communities.

He added: "If successful, it will particularly help many rural and urban deprived communities which have no access to banking locally."

The launch of the new current account clearly showed the business case for a Post Bank but this was not a substantially different product in banking terms, said Mr Hayes.

"We hope that the initiative is successful and helps to drive more traffic and business into the country's post offices," he said.

A Post Office current account has long been anticipated.

Former Post Office chief executive Alan Cook told a government select committee that a Post Office current account would be launched in 2010.

The company then announced the product would be launched in spring 2011. Full details of the new account will be announced over the coming weeks.