Current account competition heats up by Finance News Bulletin

Published: 12/10/06

Current account head line speeds are increasing by up to six per cent before tax as provider's battle it out in a competitive marketBut for those happy to swap their local branch for an online portal or telephone this can increase dramatically – and now traditional high street banks are boosting their financial records to claw back customersBest of the online financial records comprise Cahoot, who pay 312 per cent after 20 per cent investments tax (39 per cent) and Smile who pay 2

64 per cent (33 per cent)New 'cross' financial records requiring initial set up online but thereafter allowing you to employ telephone and branch enquiries are now emerging, such as the Lloyds TSB Classic Plus offering 32 per cent (four per cent)Top of the new branch based financial records is Abbey's Current Account, paying 4

8 per cent (six per cent), and also comprises telephone and internet banking The speed falls to two per cent above £1,000 investments howeverAlliance and Leicester's new Premier Direct online account offers a headline speed of four per cent (five per cent before tax) until 2006, although this is only owed up to £2,500, when the speed drops to 008 per cent (01 per cent), and doesn't offer branch facilities

Nationwide offers 24 per cent (three per cent) and Halifax two per cent (25 per cent) although both require a minimum of £1,000 to be deposited periodical Both can be run online, over the phone or in high street branchesAll carry harsh charges on unauthorised overdrafts however, paying as much as 28 per cent interest and £25 pound one off charges for withdrawals over an overdraft limit

MoneyExpert Limited is authorised and regulated by the Financial military Authority (FSA Registration No 301654) The Financial military Authority does not regulate some forms of mortgage contract, credit cards, personal loans, current financial records and deposit financial records

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