The Sun - ‘No interest’ in current accounts

IT’S official, we barely have any interest in current accounts – yet banks still want to charge us for having one.

Credit interest rates on our current accounts have increased by a measly 0.29 per cent since October, despite the Bank of England hiking its base rate to 0.5 per cent over the same period.

With inflation on the up, this means our money is increasingly rotting away in stagnating easy-access accounts, where the banks use it to generate huge profits for themselves.

And nearly half the bank accounts available pay less than one per cent, with a staggeringly 47 out of the 105 accounts on the market providing next to no return.

New research from MoneyExpert.com shows the average account’s credit interest rate stands at 1.84 per cent, while the Bank of England base rate is now up to 5.25% with a further rise expected next Thursday.

This is despite high-profile launches such as Alliance & Leicester’s Premier 21 account paying a whopping 10 per cent for 16-21 year-olds and other offers from firms such as Halifax and Bank of Scotland paying six per cent.

Sean Gardner of MoneyExpert.com, said: “Current accounts are the major personal finance issue in the UK, with customers rebelling over fees and the OFT launching an investigation.

“Despite all of that the average rate paid for customers who keep cash in their accounts has barely budged in the face of Bank of England pushing up interest rates.

“Around 12,700 people are switching current accounts every day. That figure is certain to keep climbing as more and more people realise there are better deals available. And there genuinely are some excellent bank accounts out there.”

MoneyExpert.com’s switching index shows around 2.29million people have ditched their bank in the past six months.

It has never been easier to switch.

Current account providers are required by law to provide details of standing orders and direct debits within three working days of a request from a new bank.

The new bank has to provide details of the new account within 10 working days after approving an application. Five years ago the process could take as long as 12 weeks.

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