The Post Office will today launch a wide range of low-cost financial services including personal loans.

As part of a £125m joint venture with the Bank of Ireland, customers will be able to take out loans ranging from £1,000 to £25,000.

Interest rates will start at 14.9% APR on loans of £1,000 falling to 7.9% on loans above £7,500. This compares with the average rate in the industry of 13%.

The Post Office plans to roll out its motor insurance offering in May followed by credit cards, savings products and mortgages.