'Time to Tart' for Natwest & Lloyds TSB Account Holders
Now is a great time for current account holders at NatWest & Lloyds TSB to vote with their feet after the high street banks announced hefty rises in overdraft costs for the second time in three months. Interest rates at Lloyds TSB have risen from 15.5% in September to 18.3% today. Meanwhile, NatWest customers will pay an average of 17.44% for going overdrawn, up from 14.96%.
This is another case of banks expecting customers to show them blind loyalty, instead of recognising that loyalty is earned. There are plenty of better current accounts on the market. For example Alliance & Leicester are currently offering a fixed Annual Earnings Rate (AER) of 6.1% AER until 31/12/07 on balances up to £2,500 plus a 0% interest overdraft for 12 months from account opening.
Whats more, it's much easier than it used to be to switch current accounts. Many banks now offer a free service to help new customers switch. Most UK Banks subscribe to the British Banker's association Banking Code. This states that banks must hand over all information about Direct Debits and Standing Orders within three working days.
If your old bank drags their feet, mentioning this should encourage them to get a move on.
For a more in depth view, read TheRateTart's Guide to Current Accounts.
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