8 February 2008
Increasing competitiveness in the current accounts sector has been noted by uSwitch, following Alliance & Leicester's move yesterday to increase its in-credit interest rates.
The bank will now offer an 8.5% rate for new Premier Direct and Premier 50 account holders.
HSBC has also raised in-credit interest to 8% recently on some accounts - and rival First Direct has also released a new current account offer giving £100 in cash to every consumer switching to them.
Personal Finance Expert at uSwitch Mike Naylor commented: "Although these rates are only available to new customers for the first 12 months of the account opening, this is still a bold and generous move.
"With the impending OFT investigation and current account providers' never ending tactics to squeeze more money out of consumers, this is a breath of fresh air."
Mr Naylor also recommended that potential current account switchers should "check the small print" on all offers - as many charge fees and the high headline rates advertised are often only applicable so long as credit in the account is below a certain level.
Make sure you're getting the most from your current account. uSwitch.com is impartial and comprehensive and can help you find one that will pay you the best interest rate on your credit balance. Compare current accounts and apply for the best banking rates in minutes, for free.
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