According to a recent study on current account holders in the UK, it has been revealed that people who have switched to a new bank account have had problems.It was found that a large majority of bank account holders had difficulties when switching and that the bank also did not offer any help with the issue.This recent study backs up the main reason why many people do not switch current accounts for many years or perhaps years, as the process is seen to be too difficult or more trouble than its worth. The problem lies for consumers that by not switching bank accounts, consumers are then missing out on cheaper banking with another bank.See our current accounts comparison table for the latest offers. Plus, reading our guides and tips pages can offer consumers more detailed information and money saving hints.
The recent decision by the Bank of England to keep the base rate at 5 percent was as per expectations according to the Abbey National.
A spokesman from the Abbey National explained that the need to manage an economy that is slowing down meant it was highly unlikely to see the interest rate increased, since that would slow it further. The rise in inflation, up to 3 percent in April also meant that a rate reduction was not going to happen since that would further fuel the inflation rate.
Looking forwards the Abbey National feel there may be a cut in the interest rate later in the year, though it needs the inflation rate to be kept under control for that to happen.
Lloyds TSB has just announced a new current account, called the Vantage. The account offers tiered rates of interest and is open to both existing and new customers.
There are no fees associated with the day to day running of the Lloyds TSB Vantage account and all customers need to do is pay at least GBP1,000 per month into the account and make sure it stays in credit. Interest rates are worked out on a daily basis and the rate determined is applied to the whole amount held.
The interest rates offered, go from 0.1 percent for the lowest amounts held up to a maximum rate of 5 percent where a balance is GBP5,000 or more. A Lloyds TSB spokesperson said that the tiered structure had been applied to reward customers and show them it was worth keeping their money in the account.