A&L launches new current accounts
by Gill Montia
Story link: A&L launches new current accounts
Alliance & Leicester (A&L) is launching new current accounts on 5th January and offering £100 cashback to customers who open a Premier or Premier 50 account.
Existing A&L account holders are excluded from the deal as are Abbey customers, both banks being owned by Santander.
The Premier Current Account pays 1% on balances up to £2,500, after which the rate falls to 0.1%.
The overdraft facility is probably a market leader because it is interest-free for the first 12 months, after which a charge of 50p per day applies when the account is in debit, up to a maximum of £5 a month.
However, the account needs to be refreshed by a minimum deposit of £500 per month.
The Premier 50, which is only available to the over 50s, pays 6.50% on balances up to £2,500 fixed for the first 12 months.
After a year, the rate drops to one percentage point below base rate.
Again, the overdraft facility is free for the first 12 months and the account includes extras such as annual worldwide travel insurance and identity theft protection.
Experts are expecting something of a battle between High Street current account providers this year, which should also see the long-awaited outcome of the High Court case over unfair overdraft charges.