If you're looking to make the most of your money, then there are two
current accounts you should definitely look into.
Both Abbey and Alliance & Leicester have revamped their top paying accounts, and you can now earn 6% (up from 5%) on credit interest and pay 0% on overdrafts with either bank.
The Abbey Preferred In-Credit Rate and
A&L Premier Direct deals are miles better than their high street rivals' offerings, many of which pay just 0.1% credit interest while charging up to 20% on overdrafts.
A&L offering is slightly better
As you're no doubt aware, A&L and Abbey have been bought out by Santander, and the Spanish banking giant is currently in the process of aligning all product ranges of its UK-owned banks (hence the latest product revamping from the two banks).
So if you are in the market for a new
current account, which one should you choose? While the Abbey and A&L offerings are identical in terms of rates, the latter is the one you should go for.
This is because the 0% overdraft offer lasts for 12 months with A&L' Premier Direct, compared to just four months with Abbey.
Similarly, you need only pay in £500 a month to the Premier Direct account to qualify for the account, while the Preferred in Credit account requires a £1,000 monthly deposit.
Competition is the only loser
While these new accounts are great news for customers, it's also a worrying sign of the dwindling level of competition in the UK
banking sector.
As Moneysupermarket banking head Kevin Mountford points out: "With Alliance & Leicester and Abbey now effectively offering just one rate between them, the news is unlikely to allay concerns over the increasing lack of choice in the banking sector.
“However, we should welcome this as a positive sign that Santander has the consumer's wishes at the forefront of its product development.”
