Current accounts can have high interest rates
7th July 2008
Consumers should look out for current accounts that pay good interest rates as there are a number around but buyers should be aware that they "generally have strings attached".
That is the advice from money website, Fool.co.uk, which has said that of the 136 interest-paying accounts on the market, 13 pay over five per cent interest a year.
Talking about the new accounts, David Kuo, head of personal finance at Fool.co.uk, said: "The new breed of high-interest current accounts has blown a gust of fresh air into an otherwise stale and complacent banking sector. Some of the rates on offer are indeed better than those available in savings accounts. But there are catches to beware of."
Mr Kuo warned consumers not to be tempted by "big juicy carrots" as offers that seem too good to be true "quickly turn into unpalatable turnips if you don't dig deep into the terms and conditions".