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By David Stevens Personal Finance Correspondent
Thursday, 4 September 2008 |
HSBC Stops Interest Payments on Current Accounts
Top 5 Current Accounts Paying Interest:
- Alliance & Leicester (8.19%*)
- Abbey (7.72%*)
- Coventry BS (5.46%*)
- Halifax ( 5%)
- Norwich & Peterborough BS (3.95%)
*Intro variable rate for limited period
 Compare current accounts
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TIRING of sports, HSBC has ditched its meagre 0.1% interest payments on most of its current accounts.
Stating that interest payments were so low anyway that customers considered them worthless, the banking giant considered it a better move to do away with them altogether, rather than raising the interest payments to a less laughable figure.
The 0.1% interest figures would have earned anyone with a £1,000 balance in an HSBC current account a grand total of 8 pence per month.
Enhance features
As a replacement, HSBC is introducing two new current accounts with ‘enhanced features’: The HSBC Current Account and the HSBC Current Account Advance.
The HSBC Current Account is aimed at customers with lower balances and trumpets the fact that the account offers a free debit card, free standing orders and direct debits and free internet and telephone banking.
Customers are urged not to swarm the bank all at once.
The HSBC Current Account Advance is perhaps a little more interesting, offering the same features as the standard current account alongside free mini-statements and balances sent to your mobile in less than half a minute.
The HSBC Current Account – to its credit – also allows access to the HSBC 8% Regular Saver account.
Compare current accounts
Current HSBC customers not bowled over by HSBC’s generosity should consider taking time to compare current accounts for a better rate.
Currently Alliance and Leicester is offering 8.19% on it’s best current account, while Abbey, Coventry Building Society and Halifax all pay out interest on their current accounts at 7.72%, 5.46% and 5% respectively.
Switching current accounts is a lot easier than it once was, with banks being obliged under legislation to pass information to your new bank within 3 days, and the new bank has just 10 days to set up your account.
You can compare current accounts here.
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