Grab £100 while you still can!

It's your last chance to bag £100 and free European travel insurance. Find out more here...

As far as freebies are concerned, £100 plus free travel insurance is pretty tasty in my books. So when Alliance and Leicester launched a current account offering exactly this, it certainly caught my attention.

The bank's fee-free Premier current account has stormed the market since the £100 offer was re-introduced this January, combining freebies with a low minimum salary requirement of just £500 a month, plus you get a 0% overdraft of up to £2,000 for a year.

Sadly, following several rumours on the financial grapevine, A&L has announced that it is closing this offer this Thursday, 2nd April - so if you want to take advantage, you'd better act fast.

To qualify, you must not have banked with Alliance and Leicester (or sister bank Abbey) during the past three months, and must switch to either A&L's Premier or Premier 50 current account using its Premier Switching Service.

In return, A&L will give you £100 within four months of account opening, free annual European travel insurance, plus the other benefits outlined above - although the insurance only covers people up to age 60.

Enhancing the benefits...at a price

For the more mature explorers among us, there is the option of upgrading to the Premier 50 account, which offers worldwide annual travel insurance to those up to 79 years.

The Premier 50 account also includes a mouthwatering interest rate of 5% on balances up to £2,500 (compared with 0.5% on the Premier account), plus other benefits such as identity theft assistance and extra health benefits.

As always, however, there is a catch. To take advantage of these enhanced benefits, you have to be over 50 and fork out a £10 monthly fee.

We've always been against packaged accounts in the past, as they often prove poor value once you add up the true value of the benefits on offer.

As far as the Premier 50 account is concerned, I won't dismiss it completely, as travel insurance for over-65s can get very expensive, and if you're a silver-haired jetsetter, the account may prove useful to you.

However, the rest of you should consider whether paying £120 a year to get £100, plus a bit of interest, is worth your while.

Fresher pastures

If you already bank with A&L and are looking for somewhere else to bag some cash, HSBC spin-off First Direct has offered its £100 switcher deal for a while, and also has an excellent customer service record.

However, it's worth noting that the First Account doesn't pay any interest on credit balances, and requires monthly funding of £1,500 to qualify for the incentive (equivalent to a salary of approx. £23,500 a year, excluding student loan deductions).

In spite of this, First Direct has a loyal following, and prides itself on its excellent customer service. In fact, they are so confident you'll like them that if you're not happy after six months, they will give you another £100 if you leave!

Doing the math

If you earn enough to pay in First Direct's minimum income, I would highly recommend them, although A&L's lower funding requirements make them better suited to those on a more modest wage.

Of course, there is one other option that provides a snazzy twist to the traditional banking model, and the Halifax Reward Current Account will pay you £5 every month you pay in £1,000 or more, helping you earn up to £60 extra a year.

Although the Halifax account doesn't pay any additional interest, it also doesn't require a minimum balance. So, if you were really clever, you could pay your salary in, then sweep it out again into a savings account that pays a higher rate of interest - helping you get the best of both worlds.

At the end of the day, switching your current account may seem like a complicated exercise, and you may think there are better ways to get a return on your cash than moving accounts.

However, with interest rates so dismal at the moment, and offers like A&L's being pulled fast, I'd say it's time to think outside the box if you want a good return on your hard-earned cash.

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