UK banks are falling over themselves to retain and increase their share of the market. As the credit crunch takes hold and deposits dwindle the High Street bank has once again become Joe Public’s best friend.
Special rates for regular savers have been launched in the last couple of weeks, with rates of 10% fixed for a year, with conditions attached of course.
Now its the turn of the current account. Following news that Barclay’s is to scrap its 0.01% interest rate that it pays on standard current accounts, LLoyds TSB seized the moment by launching it’s ‘Plus’ version of credit account that will pay out 5.84% interest for the first twelve months.
Are there strings attached. Of course.
You would need to pay in a minimum monthly £1000 per month and the special rate would apply to the first £2,500 only. Anything over £2,500 will earn you a Barclay’s style 0.01%!!
The thing that annoys me most with financial institutions is that as an existing customer you have to apply to the bank to be upgraded to the latest best deal. Wouldn’t it be nice if the banks really did value your custom so much and automatically included your account when updating their services.
Just for comparison, Alliance & Leicester offers 8.19% for the first year on its Premier Direct account, A minimum of £500 per month input is required and the special rate applies to the first £2,500 only.
Abbey offers a rate of 7.72% with a minimum monthly input of £1000 required.
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