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Current account interest rates beat savings accounts

05 May 2010 / by Lois Avery

Current accounts could offer better credit interest rates than savings accounts according to new research from Defaqto.

The independent financial research company has found that some current accounts are now offering credit interest rates that surpass those available from savings accounts, with some as high as five per cent.

But new figures from Defaqto show that consumers could be missing out on these deals because only six per cent of adults change their current account each year.

The research showed that many people are concerned that switching their current account will interfere with direct debits or will go wrong in some other way, instead settling with their account even if the credit interest rate is low.

However, Defaqto is urging consumers to take advantage of introductory offers by switching accounts now.

David Black, banking specialist at Defaqto said: “Consumers should look at their current account and see if they can get a better deal elsewhere. There are some generous introductory deals available which include high credit interest rates, 0% introductory overdraft rates and even a £100 cash gift."

“Don't be afraid of the switching process because it is actually relatively seamless. The banks will do most of the legwork by arranging the notification of the change of account details with all the direct debits and standing order originators. The entire switching process will typically take between two and four weeks.”

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