Have the Alliance & Leicester started a battle in the banking sector?
It has been revealed that the Alliance & Leicester, the popular UK bank, appears to have started something of a free for all in the current account market. The company is offering new account holders a £100 cash back payment (which would be paid within four months of opening an account), 6.5% interest and a 0% overdraft (within an agreed limit) for the first 12 months. This offer relates to the companies Premium and Premium 50 accounts although there are other conditions attached which need to be checked out.
This is the first move of its kind in recent times for the current account market but whether it will cause a battle between sector leaders remains to be seen. It would appear that the Alliance & Leicester is looking further ahead than most banking institutions to a time when the UK recovery is in full swing and investors and savers have money to put away. While the 6.5% interest rate is very attractive there is no way that this can continue indefinitely bearing in mind the current economic situation.
While advice must be taken before committing your money to such an account, a number of UK savers may well be attracted by the headline terms.
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