UK banking group Halifax has announced that its 'packaged' current account, believed to be the best value account of its kind from a major high street bank, will be available in February 2007.
The ‘packaged’ or ‘premier’ account market is currently dominated by the UK’s ‘big four’ banks. Together, they hold around seven million accounts, generating around GBP900 million of fee income annually.
Halifax has put a vast amount of effort into the current account market. This new product complements the bank’s high interest current account and moneyback, the only current account in Europe offering cashback on debit card purchases.
The account will offer the best credit interest rate available in the sector. The ultimate reward current account will offer a minimum of 5% gross on credit balances up to GBP2,500 and a GBP250 interest free overdraft. The account also offers a range of additional benefits worth a total of over GBP700 to account holders. There is a monthly fee of GBP10.
Once registered with the new account, customers automatically receive Family Worldwide Multi-trip Travel Insurance with golf and winter sports cover, AA Roadside Assistance, 1% extra on the interest rate on Halifax Guaranteed Saver, as well as cashback on new mortgages and loans.
In addition, the new product also offers other benefits, such as discount on Halifax Insurance products, commission-free travel money and a series of discounts with a variety of travel and leisure companies. Customers wishing to make use of these discounts will be issued a discount book containing vouchers to be redeemed at the appropriate locations.
The big four banks have had it too easy in packaged accounts for too long. Our new account changes all of that, said Paul Marriott-Clarke, head of banking for HBOS. We believe we are offering the best value packaged account. We are determined to win business from the big clearing banks and offer customers a better deal at the same time.
The new account will be available from all Halifax branches, online and via the telephone, and will be supported by a major advertising campaign.