Despite the interesting choice of name the Co-operative Bank is aiming to wipe the grin off its rivals faces with the launch of its internet banking subsidiary smile.co.uk.
The new internet bank will go live on October 28 with a headline grabbing interest rate of 4 per cent gross on its flagship current account. The account will also offer an automatic free overdraft facility of £500.
Smile will offer a full range of banking services including savings accounts, credit cards, personal loans and Isas.
The cash based Isa will pay investors 6.5 per cent.
Co-op bank chief executive Mervyn Pedelty says: "This is a brand new bank which offers all the products, services and convenience of a high street bank but based on the internet. This means we will pass on to customers the benefits of our lower costs.
"smile is fully backed by, and is part of a full service UK clearing bank. Customers willbe able to conduct all their routine banking from anywhere in the world via the internet."