Nationwide Building Society has announced it is increasing the interest rate on its FlexAccount current account to 4.25 per cent from the beginning of April.
Available to both new and existing customers, the rate will be paid on balance amounts under £3,000, while those with a tendency to overspend will benefit from an overdraft rate of 7.75 per cent.
Research carried out for Nationwide in the second half of last year found that 10 per cent of 496 people who switched their current account opted for Nationwide's offering.
The firm is now hoping its rate change will encourage more people to ditch their high street bank and switch to a more competitive rate.
It maintains that customers could save 13 times more in the course of a year if switching from one of the big four high street banks, £130 as opposed to £9.
Steve Clode, marketing director, said: "We are delighted that consumers are already voting with their feet and switching to Nationwide's FlexAccount. The account offers an exceptional rate which is available to both new and existing customers." To read more about current accounts, click here.
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