Five top current accounts offering cash and benefits for switching
Saturday, 07 January 2012 11:38
The current account market is offering some excellent switching incentives to UK customers at the moment.
Despite the fact that a vast majority of consumers have never switched current accounts, the industry clearly believes they can change customer sentiment and are offering some good reasons to do so in the form of hard cash.
If you have never switched current accounts it is normally not as bad as you may think. The process has improved through dedicated switching services and the nightmare stories of customers failing to pay direct debits and vital bills because the switching service has gone wrong are not as common as they once were.
Let’s take a look at five excellent options that may persuade you that switching your current account in 2012 is one way to improve your finances this year.
Santander
In some ways Santander has revolutionised UK banking and they have certainly been at the forefront of these offers. The current offer is if you switch to their Preferred Current Account you will receive £100 cashback. The account also pays five per cent interest on balances up to £2,500 and the overdraft rate is 0 per cent for 12 months and then 50p a day, capped at £5 a month. You need to put £1,000 a month in to qualify for the benefits. this offer has recently been extended until February 29th 2012
The Co-operative Bank
The Co-op’s current account has put interest charges on hold for all agreed overdrafts until April. The account does not pay interest but you don’t have to deposit funds in each month. The overdraft rate is 15.9 per cent plus a £20 annual set-up charge.
HSBC
HSBC’s new offering for its bank account pays six per cent interest on in-credit balances on accounts opened before the end of January 2012. The overdraft rate is 19.9 per cent and customers need to pay in a minimum of £500 a month.
First Direct
First Direct’s 1st account offers £100 cash as a switching incentive and if you are not happy with the account after six months they offer the customer another £100 if you decide to switch again as a kind of leaving present. The account pays no interest. There is an interest-free overdraft of up to £250 before reverting to 15.9 per cent. Customers have to deposit a minimum of £1,500 per month.
Halifax
Halifax’s Reward Current Account offers £100 cash paid upfront when you switch and pays £5 a month interest on positive balances. The overdraft charges are set at £1 a day up to £2,500 and then £2 a day. Customers need to pay in £1,000 a month to qualify for the bonuses.
Compare current accounts to find the rates and features you need.
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