20 March 2008
Consumers have been given a "strong incentive" to switch their current accounts after Abbey amended its offerings, uSwitch.com has claimed.
Personal Finance Expert at the company Mike Naylor said that the move, which will see the bank introduce a 12-month 0% overdraft, is a sign that competition is "hotting up" among service providers.
Because a proportion of customers rely on their overdraft faculties, he noted, they may wish to change products because of their attractiveness.
"Abbey's changes suit customers at both ends of the spectrum, whether they are making regular use of their overdraft, benefiting from the high interest on in-credit balances or even just dipping in and out of their overdraft," he commented.
He added that one of the clauses is that at least £1,000 should be topped up to the account every month for the deal to be valid.
Recently, Head of Marketing at the Coventry Rachel Haworth, said that in some cases people are tricked by advertised headline rates on current accounts and urged them to research the market.
© 2008 Adfero Ltd
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