It really does pay to read the small print.
The bank Santander has made the move to rebrand the banks formally known as Abbey (Abbey National), Alliance and Leicester, and Bradford and Bingley. The conversion to Santander should be completed next year.
For now, the bank highlights the points that it is committed to product innovation and fresh thinking.
You may have seen the adverts featuring Lewis Hamilton and highlighting the sponsorship of Formula One. The advert tells us we can earn interest at 6% on a current account, which is an absolutely fantastic rate when you consider the best of one year fixed rate bond at the moment is offering only 3.85% (at 15 July 2009).
However, the 6% rate only applies to the first £2,500 you save at a maximum rate of £1,000 a month, with the balance paying 0.1%. This is stated in all the adverts but it’s not that clear compared to the massive 6% headline. I know this will comply with advertising standards but I meet people every week who misunderstand these types of offers.
This is a nonstarter as a savings account, and it’s only suitable for those wishing to open a new current account with a running balance of about £2,500. Also, the 6% rate ends in one year, after which the account will pay 0.1%.
So, before opening an account, read the small print, or have someone you trust check it out for you.
Hi Katie,
Interesting about Santander but you can take advantage of the 6% you can have more than one account with these banks will be interesting to see what happens when Alliance & Leicester and Bradford and Bingley are all known as Santander in 2010 Merry Xmas to you all at the office.
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