Half of current accounts are interest-free

| August 6, 2009 | 0 Comments
Half of current accounts are interest-free

Nearly half the current accounts at UK banks are paying customers an interest rate of 0%.

Research by moneyfacts.co.uk found 49% of current accounts offer consumers no return on their money.

This is compared to fewer in one in five (19%) of current accounts that paid no interest 12 months ago.

More than four in five (83%) non-fee paying current accounts pay less than 0.1% interest.

“In the current economic climate, every penny counts and many customers are losing out on valuable interest,” said Michelle Slade, moneyfacts.co.uk spokesperson.

“Providers have been quick to bring down the credit interest rate with the base rate, but have been reluctant to pass the benefit on through their overdraft rates.

“A current account is many people’s most widely used product, yet so few will switch to get a better deal.

“People assume that it will take too much time and efforts to switch all their regular payments, but this isn’t the case as the bank will do it all for you.”

With a 6% interest rate, Abbey and Alliance & Leicester are the top paying current accounts.

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