Abbey welcomes take-off in current account switching

With news from MoneyExpert.com that more than 1.38 million customers plan to switch their current accounts over the next six months, people switching to Abbey can now benefit from a market leading 6.30 per cent AER.

The rate applies for 12 months on balances of up to £1,000 for people switching to Abbey using its account transfer service, Customers need to pay in at least £1,000 or more each month.

The Big Four banks currently hold 73 per cent of the current account market. Abbey has already seen record numbers switch in 2006, with 70% coming from the Big Four.

Switchers to Abbey from Big Four in 2006

1 Barclays 21%
2 RBS/Natwest 19 %
3 Lloyds TSB 15 %
4 HSBC 15 %

Switchers are moving to capitalise on a ‘current account revolution’, which has seen the best current account rates change from 4.25 per cent below base rate in December 1996, to one per cent above base rate at December 2006.

Consumers who regularly use their overdraft can also switch for a better deal with Abbey’s Preferred Overdraft Rate option account, which offers a typical overdraft rate of 10.9 per cent EAR.

When customer opts for Abbey’s Preferred Overdraft Rate. Rates shown are on overdraft balances up to £1,000 when £1,000 or more per month is paid into the account.

Customers who switch to Abbey's Preferred In Credit Rate option and who use an overdraft pay a standard rate of 16.9%EAR.