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.