Alliance and Leicester has launched a new account offering customers 6.1 per cent interest on the contents of their current accounts.
In addition, the bank has upped its savings account offer to 12 per cent for the first 12 months, and added a 12 month interest-free overdraft option.
The offers will be applied to its Premier Direct account. Following the initial 12-month term the overdraft will charge 5.9 per cent for authorised and unauthorised borrowing.
The current account will offer one per cent below the base rate – or 3.75 per cent at the current interest rate.
“These changes are all about choice,” said head of current accounts at Alliance and Leicester, Helen Palmer.
“The restructure of the accounts ensures we offer a choice of market leading accounts with different benefits based on differing customer preferences.”
The best current account rate only applies to balances at or below £2,500, falling to just 0.1 per cent above this cut off point.
All changes will be available online from September 2nd 2006 and in branches from September 4th.
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