Trendy new account from Alliance & Leicester

Alliance & Leicester is launching a new fee-free Premier Plus Current Account, which reflects current "trends" in banking.

08:03 16 July 2004

Alliance & Leicester is launching a new fee-free Premier Plus Current Account, which it hopes will challenge the grip traditional banks have on the marketplace.

It aims to go head-to-head with the Big Four banks - Barclays, HSBC, NatWest and Lloyds TSB - who currently hold two thirds of the current account market.

The head of current accounts at Alliance & Leicester, Ewan Edwards, said: "Current account customers are increasingly using the phone and internet for day-to-day transactions and prefer to visit branches for more complex issues."

He added: "The launch of Premier Plus reflects this changing trend in banking."

The account's 5.5 per cent credit interest, guaranteed until the end of 2005, is a staggering 55 times higher in interest terms than the typical interest rate of 0.1 per cent offered by most traditional banks.

Changing the old face-to-face ways, servicing on this account is via the internet and phone, with statement information provided online. Customers can pay cheques and cash in at Alliance & Leicester branches or at any post office.

The account has a zero per cent authorised overdraft for the first 12 months, which reverts to a 6.9 per cent thereafter.

In addition, the account also offers customers free annual worldwide travel insurance, no annual or monthly fees, and preferential deals on mortgages and Legal & General investments.