Moneyfacts.co.uk: 50% of current accounts pay no interest

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Moneyfacts.co.uk: 50% of current accounts pay no interest

Wed 5th Aug 2009

Half of all current bank accounts in the UK pay no interest to their holders, it has been discovered.

Research conducted by Moneyfacts.co.uk has found that 49 per cent of current accounts offer no interest at all, while 83 per cent of non-fee paying current accounts offer just 0.10 per cent interest or less.

It also discovered that packages from Alliance & Leicester and Abbey have boosted the average credit interest rate to 0.71 per cent, as accounts run by these banks currently offer six per cent AER.

Spokesperson for Moneyfacts.co.uk Michelle Slade said that in the current climate many people are losing out on extra pennies that could be earned through interes.

She added: "Most people have their current account with one of the big five banks, but neither Barclays Bank or HSBC pay any credit interest at all."

The Abbey and Alliance & Leicester six per cent interest packages, which were announced this week, were described as a "great opportunity to ditch a poor value account" by bank spokesperson Gillian Almond.

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