Alliance & Leicester has launched a new interest rate on current accounts.
The bank, which has criticised what it calls the "old-fashioned" attitudes to current accounts, is offering Alliance & Leicester Premier Plus customers five per cent AER.
Barclays, Royal Bank of Scotland, Natwest and HSBC currently only pay 0.1 per cent on credit current accounts.
These banks hold a 48 per cent share of the market and manage an estimated 35 million current accounts.
As a result, Alliance & Leicester is urging banking customers to take a fresh look at their current account needs.
Simon Ripton, current accounts manager at Alliance & Leicester commented: "There are so many elements to a modern bank account which could make it worthwhile for customers to switch.
"Customers should always make sure that they shop around to get the best deal possible, looking at the headline credit interest rate, considering the rate they are paying on their overdraft, and what other benefits they could be getting."
Alliance & Leicester charges 7.9 per cent for authorised and unauthorised overdrafts.To read more about current accounts, click here.
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