Supermarket Tesco is to offer its first current account, which offers discounts to shoppers when they open an account.

The move follows M&S, which began offering a free current account last month which offers customers a £100 voucher when they open an account, as well as one point for every £1 spent in-store.

Under the scheme, customers will be able to earn Tesco Clubcard points even when they use their debit cards elsewhere. It will be a free account if customers pay in at least £750 per month, if not then it will cost £5 per month.

Benny Higgins, the chief executive of Tesco Bank, told the BBC: "Customers tell us they are very tired of the smoke and mirrors and the need to pay attention to the small print. We are setting out to be very clear and transparent.”