Halifax's cash bonuses for those who switch current accounts

Commenting on the launch of Halifax’s cash bonuses for those who switch current accounts, Kevin Mountford, head of current accounts at price comparison website moneysupermarket.com, said: The current account market is alive and kicking with providers attempting to draw in custom left, right and centre through special offers and inflated credit interest rates.

“Halifax has now joined a growing list of high street providers offering cash incentives and other benefits to those who change accounts. This is also on the back of a very attractive rate of 6.17 per cent AER on balances up to £2,500. While these types of offers are good news for people who want to make some fast cash, consumers need to look beyond the ‘dangling carrot’ and interrogate whether the offer is as good as it seems.

“People need to check the small print of any prospective current account before jumping in head first to make sure they are not caught out. For example, the mouth-watering rate of 6.3 per cent on Abbey’s account only applies to the first 12 months, it then drops to 2.5 per cent. Additionally many accounts require a certain amount to be paid in each month for the top rates to apply.

“Aside from the short-term benefits, people may also want to make sure the bank’s commitment to customer service is up to scratch – moneysupermarket.com’s research shows people are more likely switch accounts due to poor customer service than be lured by a special offer or high interest rate.”