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Banks pay you to bank with them
According to Moneyfacts.co.uk, the financial information provider, current accounts are big business for the banks. Indeed, this has been made clear by several banks who over the last 6 months have been offering deals to entice you to switch.
Not only does it secure them your prime current account, more importantly, it offers the opportunity to cross sell their whole range of other products.
"It's great news for consumers to see the return of Halifax's £100 switcher incentive," says Michelle Slade of Moneyfacts. In fact, on top of the £100 paid to the account an interest and fee free overdraft for 120 days is also available.
"Not only will consumers benefit from this cash payment, they're also signing up for one of the better paying credit interest accounts on the market. Should they choose to also take advantage of the Halifax One Credit card and transfer a balance to it, a further £25 bonus is up for grabs."
Slade adds that First Direct is the only other provider to offer a cash incentive, although several other accounts offer either preferential credit or debit interest rates in an attempt to secure their share of this potentially lucrative sector.
Alliance & Leicester, for example, operates a recommend a friend incentive, whereby each party receives up to £40. Abbey meanwhile, has credit interest fixed at 6.13% on the first £1K for 12 months, as well as an interest free overdraft for 4 months. And Barclays offers an interest free overdraft for up to 12 months dependent on the level of funding.
Other accounts will also offer 0% overdrafts during the switching process, and HSBC offers the promise to pay £10 if any mistakes are made e.g. direct debits set up incorrectly or cards arriving later than promised.
"But don't be lulled by upfront incentives, unless you know you are also getting an account which matches your needs. Some deals are aimed at borrowers, whilst others are designed for those who remain in credit," notes Slade.
Moneyextra.com recommends you take independent financial advice before acting on any article
Back2007-06-18 10:43:31 © Moneyextra.com
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