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Banks step up war for your money

24 February 2005
High-street banks are engaged in a full-scale war over customers, offering new perks, high interest rates and free overdrafts to tempt clients away from their rivals.

HSBC this week fired a shot with a new regular savings account paying a high interest rate of eight per cent before tax - but available only to current account customers.

Other initiatives include the first account offering money back on debit card transactions, which Halifax/Bank of Scotland expects to attract as many as 10,000 customers in its first week.

Lloyds TSB, another of the 'big four' high-street banks, is offering £50 to anyone who opens an account with them

It is becoming easier to switch banks, the Daily Mail reports, with more than a million people moving their accounts last year - building society Nationwide alone picked up 300,000 new customers between April and November.

It is important not to be blinded by clever marketing, however.

Most deals offered by the main banks won't leave you more than £100 a year better off.

Compare the best new banking deals by clicking here.
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