Abbey extends its 8 per cent account

Abbey is extending its popular 8 per cent current account so from 5 November, all new customers can benefit, not just those who switch accounts. Payable on balances of up to £1,000 for the first year, the 8 per cent can be worth up to £80 to a customer. In year two and beyond, the interest reverts to Abbey’s standard 2.5 per cent, which is worth up to £25 over the year. This is compared to the majority of other big high street banks who pay just 0.1 per cent on in credit balances - or £1 a year.

Steve Shore, Abbey Head of Banking, said: “Our 8 per cent bank account, which we launched in the summer for switchers, has proved very popular. But despite this great rate, we know that for a number of reasons there are still some people who don’t feel ready to switch - and that is why we’re offering the product to all new banking customers who open a ‘Preferred In Credit Rate’ bank account with Abbey.

“We want to give them the chance to see that changing bank account isn’t difficult or a hassle. In fact, with interest on balances that’s worth up to £80 in year one then £25 thereafter, they should have no reason to go back to another bank with a paltry interest rate that’s worth just £1 a year. It’s another example of how we’re challenging the banks that are counting on consumer lethargy.”

About Abbey’s bank accounts

Abbey has an 8 per cent bank account for switchers on in credit balances of up to £2,500 for one year. Thereafter the rate reverts to 2.5 per cent (25 times that of most big banks on the market).

To qualify for this rate, a customer needs to switch their bank account to Abbey from their existing bank using our dedicated account transfer team, who will transfer their salary mandate, direct debits and standing orders. Abbey guarantee that a customer will not be worse off as a result of any delays or charges when switching.

The new 8 per cent account, which has been announced today, pays 8 per cent on balances of up to £1,000. It is available to new banking customers who choose not to switch their main account. The only thing they have to do is credit their Abbey account with £1,000 a month.

Abbey also has a bank account, which is more suitable for people who use their overdraft more often. It is called the ‘Preferred Overdraft Rate’ account and has a lower advance overdraft rate of 10.9 per cent and a lower in credit interest rate of 0.1 per cent.

Abbey also has competitive youth, student and graduate bank accounts and is also the parent company of Cahoot, which has an online current account which pays a healthy 3.75 per cent interest on in credit balances. For more details on any of these accounts or to apply for the Abbey 8 per cent current account, visit abbey.com.