MoneyExpert advises customers over current accounts

Financial advice site MoneyExpert has advised customers to be vigilant over the current accounts they take up, stating that almost two-thirds pay one per cent or less interest when borrowers are in credit.

Average rates on existing accounts in the UK, according to the organisation, are 1.2 per cent and 47 products pay only 0.1 per cent interest.

These low rates are despite what MoneyExpert describes as “high-profile launches” by lenders such as Halifax, Coventry and Nationwide trying to “shake up the market” by offering higher rates for customers who stay in credit.

Sean Gardner, MoneyExpert’s chief executive, said: “Bank customers could be forgiven for thinking that they receive a good deal on their current account given all the recent publicity about new accounts being launched and high rates on offer to win new business.

“The reality is unfortunately that current account rates remain inexplicably low with most firms paying customers next to nothing in interest when their accounts are in credit. An interest rate of 0.1 per cent is simply not justifiable.”

The advice site states that there are many competitive deals on the market and recommends that customers should change their account if they are unhappy with their rate.