Barnsley Building Society current account interest rates 'a big draw'

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Barnsley Building Society current account interest rates 'a big draw'

Wed 4th Aug 2010

The current account interest rates offered by smaller organisations such as Barnsley Building Society compete well with the larger institutions.

This is the view of director of Ark Financial Planning Phil Perry, who described how mutual societies have always had a "draw" for consumers.

He explained that such organisations do not have the same sort of risk levels to contend with as larger corporations, since they will happily compete with banks' headline rates and then drop a deal when the money runs out.

"They will use up the funds that are available, be it for mortgage rates or allocated trust rates, as far as they can and then disappear off the market," said Mr Perry.

But he stressed that smaller mutuals do not have the same outlay as the "bigger boys" in the industry.

Moneyfacts.co.uk recently carried out a report for the Telegraph and found that smaller firms offer some of the best deals, with Barnsley Building Society giving a three per cent return on its one-year bonds.

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