Online current accounts need checking

09 February 2007
Interest rates offered on internet only current accounts have actually become less attractive, falling from an average of 3.28 per cent to 3.04 per cent per annum over the last two years, has warned.

Its research into these accounts also shows that on average, internet only current accounts pay 2.27 per cent per annum less than the most competitive current accounts on the high street.

As high street banks' interest rate offerings rise to rates of five to six per cent per annum, with Abbey, HSBC and Halifax products leading the way, a customer switching £1,000 from an account with First Direct could make £43 in interest in a single year by switching to the six per cent Abbey Current Account, calculates.

Recent research from revealed that as many as 1.4 million bank customers are expected to switch current accounts over the next six months.

Moreover, the rush to the high street banks could be hastened by the fact that First Direct's £10 fee imposed on all customers who pay less than £1,500 into their accounts monthly will take effect later this month.

To compare current accounts, click here.

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