UK banking giant Barclays has set the bar higher in the ferocious battle for the high street customer by introducing an incentive laden new current account.
Barclays is launching its Additions Plus account, which it hopes will entice account holder away from its rivals by offering a GBP5,000 interest free overdraft and a GBP5,000 interest free Barclaycard for ten months with the only stipulation that customers pay GBP1,000 into their account each month.
The new account, which will cost GBP12 per month after an introductory period, establishes a new level of incentive add-ons in the UK retail banking sector and comes as a response by other to attract customers through offering higher rates of interest and free insurance.
In a press release Barclays claimed its package of benefits, which also include free travel insurance and breakdown cover, is worth in the region of GBP1,000. Targeting specific rival offers, the bank added that its new account offered considerable more value than an interest rate of 4%.
According to thisismoney.co.uk, Barclays launch comes at a time when the traditional big four of the UK retail banking industry, Barclays, HSBC, Lloyds and NatWest are being criticised for making massive profits while providing a relatively poor service. In such a climate, Barclays’ new Additions Plus account is not just a move to capture market share from its main rivals but also an attempt to avoid losing customers to smaller plays.