Supermarkets and other smaller players are likely to make an aggressive bid to poach retail customers as the bigger banks are broken up.

This month, Virgin Money, one of the leading credit card providers, applied for a licence that will allow it to take bank deposits and offer mortgages. There is speculation that it will bid again for Northern Rock. Tesco and National Australia Bank have also been tipped as possible buyers.

Here we review some of the new kids on the block.

Tesco and Sainsbury’s

Britain’s biggest store chain also offers credit cards, loans and internet savings, and has long promised to expand into mortgages and current accounts.

Its Clubcard Mastercard is the market leader at 0% on purchases for 12 months. Sainsbury’s Finance offers 0% for 10 months.

Tesco also has some of the best online savings rates, with its Internet Saver paying 3% (new customers only) and one of the best-buy personal loans at 8.9%.

Sainsbury’s narrowly beats both with an 8.8% loan and an Online Saver at 3.2%, although that drops to 0.5% if you make more than three withdrawals.

Virgin Money

Virgin’s credit card is the market leader for balance transfers, offering 16 months’ interest free with a 2.98% handling fee.

Andrew Hagger of Moneynet, the comparison site, said: “Virgin’s savings products won’t set the world on fire — it is offering just 0.1% on its easy access account and 0.1% on its cash Isa.”

Virgin provides personal loans with the Co-operative Bank at 8.9% for sums from £7,500 to £14,950.

National Australia Bank

The Australian owner of the Clydesdale and Yorkshire banks is one of the few lenders offering mortgages to first-time buyers with 5% deposits. The rate is 6.99% for three years and there is a £599 fee.

Clydesdale historically had good current account deals but has fallen back. The authorised overdraft rate on its main account, Current Account Plus, is 16.95%.

Two years ago it was 9.64%, one of the lowest on the market. Alliance & Leicester, in comparison, is offering 0% for the first 12 months. The unauthorised overdraft rate at Clydesdale is the highest on the market at 29.99% plus penalty charges. Also, the current account pays no interest on balances in credit.

Small building societies

These are offering some of the best savings deals as they look to boost their balance sheets and fund mortgage lending.

Chesham building society has the market-leading cash Isa at 3.25%, with 180 days’ notice. The rate includes a 0.45 percentage point one-year bonus. The minimum deposit is £500.

West Bromwich offers the top easy-access savings account at 3.35% including a 0.6% one-year bonus (minimum £100 deposit).