Abbey current account launches eight per cent rate

26 June 2007
Switchers to an Abbey current account are being wooed with interest rates of eight per cent for balances of up to £2,500 if they join from July 2nd.

The market-leading current account interest rate is available only to customers paying in at least £1,000 a month, making the Abbey account their main current account.

At this rate of interest, "our eight per cent account is a whopping 80 times more valuable than a standard bank account," said Abbey's head of banking Steve Shore.

In June 2007, the interest rates on current accounts offered by the 'big four' banks, namely HSBC, Barclays, Lloyds TSB, and Natwest were at 0.1 per cent.

According to initial figures for early 2007, the largest number of switchers to Abbey this year have come across from Barclays, at 24 per cent, while 17 per cent migrated from RBS/Natwest.

Finance site MoneyExpert.com commended Abbey for introducing the eight per cent rate and predicted that, with current accounts "the new switching battleground", Abbey's move could herald a race to provide better interest rates from other providers.

The average interest rate on all current accounts now on the market is just 1.8 per cent, MoneyExpert.com estimates.

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