Battle for current account customers hots up - Banking - News - Moneyfacts

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Battle for current account customers hots up

Battle for current account customers hots up

Category: Banking

Updated: 14/12/2012
First Published: 18/01/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A battle between the major banks and building societies over current account customers appears to have broken out, much to the benefit of consumers, Moneyfacts.co.uk has revealed.

According to the research, a growing number of incentives are being offered by providers in an attempt to persuade people to switch their current account.

The introduction of 'switcher incentives' appears to have intensified in the last few weeks, with high street providers including Halifax, HSBC and Santander all making a play for new customers.

Some deals hope to attract new customers by offering a cash payment, while others have pinned their hopes on interest-free overdrafts catching the eye of consumers.

Lender
Account
Switcher cash payment
Switcher interest free authorised overdraft
Switcher AER credit interest
Barclays Bank
Bank Account
N/A
0% for 12 months
N/A
first direct
1st Account
£100 paid in 3 months
N/A
N/A
Halifax
Reward Current Account
£100
Interest and fee free for 120 days
N/A
HSBC
Bank Account
£10 if any direct debit missed
0% for 12 months
6% for 12 months
Nationwide Building Society
FlexAccount
£100*
0% for 3 months
N/A
Santander
Preferred Current Account
Up to £300
Interest and fee free for 12 months
5% for 12 months
The Co-operative Bank
Current Account
N/A
0% from January to April 2012
N/A
*Payable if all Direct Debit companies not contacted within 10 working days.

Yet while it is encouraging that some attractive propositions are being introduced, consumers have been warned they must assess carefully the switching deals on offer.

Furthermore, it is vital that people also take time to consider whether any new current account offers features which are indeed suitable for their needs.

"While it's good to see lenders offering customers some exciting incentives, customers looking to move their main account have to assess all the areas to decide if it's appropriate for them," added Rachel Springall, spokesperson for Moneyfacts.co.uk.

"When choosing a current account, customers need to decide its main purpose, whether it is for earning interest, an overdraft they can dip into at a low cost as well as considering the incentive package.

"Those already looking to move their current account could also be rewarded with a cash injection.

"Switcher offers tend not to stay around for long, so customers need to consider whether it's a good time to move and if so, act quickly."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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