An increasing number of banks are no longer paying interest on many of their
current accounts, it has emerged.
Barclays, First Direct,
HSBC, Nationwide and the Co-operative Bank have already stopped paying credit interest on several of their accounts.
NatWest, Royal Bank of Scotland (RBS) and Santander have all recently announced they are to follow suit in the coming months.
As from September, customers using the Advantage Gold account, Private
Bank Account, Current Plus, Student Account, Graduate account, Cash Account and Step Account at Natwest will not be paid interest.
Santander has also announced that it will implement the same measure to many of its
current accounts as from October.
David Black, from statisticians Defaqto, said savers should not be hesitant in changing their
current accounts if they feel they can get a better deal elsewhere.
"People shouldn’t be afraid to change their
current account as the switching process is now fairly quick and seamless and there are some fairly impressive introductory deals about," he remarked.
According to the Office of Fair Trading, just six per cent of adults in the UK switch their
current accounts per year.
