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| Halifax tempts current account holders with overdraft and cash deal | Halifax tempts current account holders with overdraft and cash deal |
| (7 days later) | |
| Halifax has kicked off this year's battle for current account customers by offering no overdraft fees for a year, plus £100 in cash, in an attempt to persuade people to defect to it from other banks. | Halifax has kicked off this year's battle for current account customers by offering no overdraft fees for a year, plus £100 in cash, in an attempt to persuade people to defect to it from other banks. |
| The bank said about 300,000 people had switched to it in 2012, and it hoped the offer would help it match or beat that figure in 2013. | The bank said about 300,000 people had switched to it in 2012, and it hoped the offer would help it match or beat that figure in 2013. |
| The deal comes amid claims that millions of consumers could be set to quit the established high street banks over the coming months following a string of banking scandals in 2012. | The deal comes amid claims that millions of consumers could be set to quit the established high street banks over the coming months following a string of banking scandals in 2012. |
| The Halifax said that from 2 January until 3 March new customers switching to any of its current accounts will not pay any fees on authorised overdrafts for 12 months, even if they have an existing overdraft. They will also receive a £100 payment. | The Halifax said that from 2 January until 3 March new customers switching to any of its current accounts will not pay any fees on authorised overdrafts for 12 months, even if they have an existing overdraft. They will also receive a £100 payment. |
| A spokesman said that with official data showing the average overdraft rate across the market is 19.65%, customers switching to the Halifax with a planned overdraft of £700 could save £137 in overdraft charges alone. | A spokesman said that with official data showing the average overdraft rate across the market is 19.65%, customers switching to the Halifax with a planned overdraft of £700 could save £137 in overdraft charges alone. |
| "Taking the additional monthly overdraft usage charges levied by many high street banks into account too, customers switching to Halifax could save significantly more than this," he said. | "Taking the additional monthly overdraft usage charges levied by many high street banks into account too, customers switching to Halifax could save significantly more than this," he said. |
| However, the small print states the overdrafts are "subject to status and affordability" – if an individual's credit record is not good enough they may be able to switch and pocket the £100 cash, but will not get an overdraft. | However, the small print states the overdrafts are "subject to status and affordability" – if an individual's credit record is not good enough they may be able to switch and pocket the £100 cash, but will not get an overdraft. |
| Everyone who does qualify for an overdraft will receive it fee-free for 12 months. After that, customers using the facility will pay a daily fee of £1 for an overdraft up to £2,000, £2 for borrowing up to £3,000, or £3 for borrowing in excess of that amount. | Everyone who does qualify for an overdraft will receive it fee-free for 12 months. After that, customers using the facility will pay a daily fee of £1 for an overdraft up to £2,000, £2 for borrowing up to £3,000, or £3 for borrowing in excess of that amount. |
| The £100 will be paid on the same day that someone visits a branch to open an account and begin the move, or in the case of those applying online or by phone, once the switching process has started. | The £100 will be paid on the same day that someone visits a branch to open an account and begin the move, or in the case of those applying online or by phone, once the switching process has started. |
| Anthony Warrington, director of current accounts at the bank, said: "Other switching offers generally only work for people who are in credit. However, this one will also be attractive for those moving an existing overdraft as they will still get £100 but won't have to pay any overdraft fees for a year." | Anthony Warrington, director of current accounts at the bank, said: "Other switching offers generally only work for people who are in credit. However, this one will also be attractive for those moving an existing overdraft as they will still get £100 but won't have to pay any overdraft fees for a year." |
| Other banks offering perks to persuade people to switch include First Direct, which is giving £100 and a £250 interest-free overdraft to those who switch to its 1st Account. However, to get the free money you need to pay in a salary or income of at least £1,500 a month. | Other banks offering perks to persuade people to switch include First Direct, which is giving £100 and a £250 interest-free overdraft to those who switch to its 1st Account. However, to get the free money you need to pay in a salary or income of at least £1,500 a month. |
| Rules coming into force later in 2013 should make switching bank accounts quicker and easier. From September the whole process of moving a current account must be completed within seven working days, and there will be a guarantee the customer will not suffer if there are any bank errors. | Rules coming into force later in 2013 should make switching bank accounts quicker and easier. From September the whole process of moving a current account must be completed within seven working days, and there will be a guarantee the customer will not suffer if there are any bank errors. |
| In October 2012, a YouGov survey commissioned by software firm SAS found that about a third (29%) of UK high street bank customers said if moving their main bank account was easier they would be very or fairly likely to switch. | In October 2012, a YouGov survey commissioned by software firm SAS found that about a third (29%) of UK high street bank customers said if moving their main bank account was easier they would be very or fairly likely to switch. |
| Top savings accounts | Top savings accounts |
| Powered by MoneySupermarket for the Guardian | Powered by MoneySupermarket for the Guardian |