The 8.5 percent interest rate offer on the Alliance and Leicester Premier 50 and Premier Direct current accounts is being extended for a further 3 months such has been its popularity.
The high interest rate is guaranteed for the first year of having the account, which also provides a 0 percent overdraft option, again for twelve months. An Alliance and Leicester spokesperson suggested that people could earn a significant amount of extra interest by swapping to these current accounts as well as saving on overdraft charges.
As a nation we tend to stick with the same accounts, with 80 percent of current account holders having been with the same one for five years or more so perhaps this Alliance and Leicester offer can change that, for the benefit of the customer.
Michael Klein, reported recently to be leaving Citigroup, of which Citibank is a part, is set to receive one of the largest payouts in the industry for a departing executive since the credit crunch started.
It is understood that Mr Klein will receive a settlement package from Citibank worth over USD42 million, made up of stocks and cash, with the proviso that he does not join a rival organisation before next October. The amount may cause consternation for the company since it sits uncomfortably with the position of banks and financial institutions saying they are struggling.
Citibank has seen many changes in recent months, with a new management structure now in place to try and steer the business back into profitability and financial stability following heavy losses on the back of the US sub-prime lending collapse.
In 2007 approximately 18,000 unsecured personal loans were taken out to pay for school fees, with a total value of around GBP165 million according to Sainsburys Bank.
Looking at the historical data Sainsburys Bank also found that over GBP2 billion extra was spent on school fees in 2006 compared with just 2 years previously. This is a massive additional amount to cover and explains the increasing use of unsecured personal loans and other forms of borrowing to fund childrens educations.
Looking ahead Sainsburys Bank also expect the trend to continue. With a rising cost of living, more children enjoying private education and also the fact that school fees themselves rise at levels well above the rate of inflation they are predicting more borrowing.
