Bank Account News

Short-term deals 'not as relevant to current accounts' - 30/11/2007

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Short-term deals should not be the deciding factor in a current account product selection, as consumers tend to stay with their main bank account for a longer period of time, it is being noted.

While some current accounts offer extremely attractive introductory rates, these should always be compared to longer-term benefits to ensure they offer a good deal over a longer period, says personal finance expert at Moneyfacts Esther James.

"You tend to stick with your current account provider for a number of years, so don't be lulled by short-term deals without knowing the full terms and conditions," she comments, adding that while some initial offers are "almost unbelievable", it is vital that customers consider how they will operate their current account as well as how to get the maximum return.

According to the online product comparing service, Abbey offers the best current account deal for people looking for the best return over the first year - however, long-term gains are more likely with Halifax's current account, which offers the best rate over a three year period.

The current account market has altered over the past 18 months, with packaged accounts proliferating and competition growing more intense, remarks Ms James.

The British Bankers Association recently highlighted that timing is key for people thinking about switching to a new current account.

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