M&S bank customers moved over to HSBC on June 1 | Personal Finance | Finance

Millions of customers of the M&S Bank have been moved to HSBC. The popular bank, run by the high street chain, has around 3.7 million customers.

It was legally transferred to HSBC on Monday, June 1, to streamline the business – but it will continue to operate with the same name. You will be able to use your M&S credit card or insurance as normal. You can also still access your direct debit and account numbers, as well as your pins.

If you have a lot of money saved with the bank or a cash ISA, it means your money will now be held with HSBC, but you can continue to access your account the same way you usually would. Your interest rates and charges will also stay the same.

M&S, HSBC and First Direct, which is also owned by the bank, now share the same Financial Services Compensation Scheme (FSCS) protection. This covers consumers when financial firms go out of business with the limit set at up to £120,000. FSCS only protects up to £120,000 per person, per authorised banking group, not per account. So, if you have more than the amount saved across the three banks, you might need to change providers.

M&S Bank’s Everyday Savings Account currently offers an interest rate of 1.05% AER, which is significantly lower than many rival accounts on the market, The Sun reports.

AER, or Annual Equivalent Rate, shows how much interest you could earn on your savings over the course of a year. Generally, the higher the AER, the more your money can grow.

A lower AER means your savings will earn less interest over time, resulting in a smaller return at the end of the year.

By comparison, digital bank Monzo offers savings rates of up to 3.25% AER for customers who open a savings account.

Anyone considering switching accounts can use comparison websites such as Moneyfacts to check the latest rates and find more competitive deals.

Now could be an ideal time to review your savings options. Customers with money held in an M&S savings account can transfer their funds up to and including July 31 without facing any penalty charges.

With savings rates varying widely between providers, it may be worth shopping around to see whether your money could be working harder in an account offering a higher rate of interest.