Moneysupermarket.com has said that the news that Halifax is launching a new current account, offering a headline interest rate of five per cent on positive balances, is likely to "shake up the market".
The financial comparison website has hailed the introduction of the new account as "great news for consumers" as it will stimulate competition in the current account marketplace.
"This move by Halifax…puts further pressure on the big high street banks, the majority of which are still taking their customers for granted and offering unattractive current account terms," said Stuart Glendinning, managing director at Moneysupermarket.com.
"On a purely credit interest rate basis, the Halifax account is the clear market leader for current account holders with modest balances."
Mr Glendinning added that, despite the new Halifax offering containing sub-prime interest rates on overdraft facilities, it was still likely to be successful in its aim.
"Halifax's stated intention is to steal customers from the big banks and, given its massive distribution network and marketing muscle, I anticipate that Halifax will shake up the market to a far greater extent than any other provider has yet managed to do."To read more about banking, click here.
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