Clydesdale and Yorkshire ready to compete on interest rates
Oct 31, 2013 (MarketLine via COMTEX) --
Clydesdale and Yorkshire Banks have launched an attractive current account. However, they face an increasingly competitive interest-paying current account market.
Clydesdale's and sister bank Yorkshire's new current account pays 4% on balances up to GBP3,000 until March 2015, and 2% thereafter providing customers pay in GBP1,000 a month. The interest-paying current account marketplace has become crowded over the past two years as a number of major banks have identified it as a means of acquiring customers. Clydesdale and Yorkshire Banks' interest rate offer will catch the eye of rate-sensitive consumers and allow it to compete with larger banks.
Interest rates are very important to consumers. Datamonitor's 2012 Financial Services Consumer Insight Survey found that 78% of UK consumers look for competitive interest rates when choosing a current account. The Bank of England's commitment to keeping interest rates low for several years means savings rates are unlikely to see a significant recovery anytime soon. As a result many savers will turn to the current account market to make the most of their money.
The heavily publicized seven day switching system launched in September will cause many consumers to consider alternative current accounts over the coming months. Clydesdale and Yorkshire Banks' high rate-paying current account and budding reputation as challenger banks will put them in a good position to acquire these customers despite a highly competitive market.
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