Halifax has launched a new banking service which offers the best credit interest rate in Scotland.
The current account, which pays five per cent interest, offers an interest rate 50 times higher than other leading banks, the company claims.
In addition to branch and telephone banking, the account also features online banking.
The bank states that the high interest rate is an attempt to lure business away from the big four, which it believes good value for money will achieve.
While the account is only available for balances of up to £2,500, Halifax believes that the average user could save over £1065 extra of the lifetime of the account, while collectively its customers will save £1.4 billion each year.
Benny Higgins, chief executive officer at HBOS retail, said: "Customers are voting with their feet and leaving the big four.
"This account provides another big incentive to do just that."
The account, while highly competitive as a banking service, may also suit individuals who want to invest a small amount of money to yield the five per cent interest without being tied down to a minimum term.
Some investment accounts pay a similar amount of interest, such as Leeds Building Society's escalator bond, which pays 4.75 per cent in the first year and 5.5 per cent in the second year, although the maximum investment is much higher at £500,000.
Halifax banking on high interest
Halifax banking on high interest
Tue, 27 Jun 2006
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