Friday 6th July 2007
Introductory offers of high current account interest rates may not be as rewarding as they seem, it has been claimed.
Figures published by Halifax show that many current accounts with a high introductory headline rate diminish to a poor level of earning once the promotional period ends.
The financial services provider instead suggests that consumers seek a current account which provides a consistently good rate of return.
Paul Marriot-Clarke, head of banking at Halifax, asks: "Why accept an offer that sees your rate fall by two-thirds after a year?"
He adds that Halifaxs own offer of £100 upfront for customers who switch to its current account should not be seen as a gimmick.
"Even without our £100 switching offer, after just two years our high-interest current account will have earned you more interest," he claims.
Following this weeks 0.25 per cent rise in the Bank of Englands base rate, financial providers including internet bank cahoot increased their headline interest rates for savings accounts.
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