Battle of the banks: Who is offering the best deal?

The UK’s leading high street banks have become locked in a bitter duel to reduce rates and entice consumers into either saving or spending.

Banks are engaged in a war over current accounts with new deals springing up on a regular basis.

Cash bribes, 0% overdrafts and free insurance are just a few of the tempting offers banks are trying to win consumers over with.

With Virgin Money stepping into the ring at the beginning of 2012, the competition is heating up. 

Lloyds TSB, the Royal Bank of Scotland, Barclays, HSBC and Santander collectively control 80% of the UK’s current accounts.

As other big players such as the Co-Operative and Virgin Money try to muscle in, the leading high street banks are being thrown into panic mode.

First Direct is now offering consumers £125 if they switch their current account.  Santander is offering up to £300 when consumers switch their main current account to a Santander Preferred Current Account.

Barclaycard is trying to entice consumers by offering £15 a month breakdown cover and worldwide multi trip travel insurance. In addition to these intriguing offerings they are also introducing an interest free overdraft of up to £300.

In an attempt to become Britain’s ‘best bank’, Lloyds TSB has pledged not to close any of its 2902 UK branches for at least three years. The 41% taxpayer owned bank confessed to lagging behind its rivals in terms of customer service, and is clearly intent on doing something about that.

Speaking to This is Money, Lloyds Group Chief Executive António Horta-Osório, said; “We want to put the customer at the heart of everything we do and it is why last year we put a moratorium on branch closures.”

Our Money Saving Team could help you find the best deals today.

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2012-02-03 16:15:01 © Moneyextra.com