Abbey is offering the 6.0% rate, which has been increased from 5.0%, on its Preferred In-Credit account, while A&L's 6.0% offers apply to its Premier Direct and Premier 50 accounts. The rate of 6.0% is fixed for the first 12-months, after which it drops to 1.0%, and it is payable on balances up to £2,500 - both providers pay just 0.1% on anything above that amount. The accounts are available to new current account customers.
Abbey Preferred In-Credit account - In order to qualify for the rate of 6.0%, customers must pay at least £1,000 a month into the account. Anyone who opens an account using Abbey's Account Transfer Service will also receive an interest-free overdraft for the first four months - after that time the standard rate 19.9% is charged.
A&L Premier Direct - This is an online account so there is no branch access. You must therefore be happy to bank over the internet. Customers must pay at least £500 a month into the account in order to qualify for the account. However, as well as paying a great in-credit rate A&L also offers a market leading overdraft. There is a free overdraft for the first 12 months (up to a maximum of £2,000). Thereafter, customers are charged 50p for every day they're overdrawn, up to a maximum of £5 per month.
A&L Premier 50 - The main features of this account are the same as that of the Premier Direct account, although as the name suggests, it is only available to those aged 50 or over. However, in addition to the 6.0% in-credit rate and interest-free overdraft for the first year, customers also receive some extra benefits including annual multi-trip travel insurance (available up to the age of 79) and health benefits such as two private out-patient consultations and up to £750 towards outpatient diagnostic testing, per year. There is however, a monthly fee of £10 for this account.
Kevin Mountford, head of banking at moneysupermarket.com, said: "Santander is firmly establishing its place as the new super-brand in town. At 6.0% these deals are streets ahead of competing current accounts, and because the rate is fixed, account holders can be assured the rate will not be coming down any time soon.
"Many people are nervous about switching their current account because they think it is complicated and fraught with potential problems. However, with deals such as these available, it really is time to take advantage of some of the great current account products available. And the major banks now have dedicated switching services so they do all the hard work, such as transferring direct debits and standing orders, for you."
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing. Products underlined can be applied for directly.
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