Earn 60 Times More Current Account Interest!

And it's not just for new customers either. Find out more here...

Lloyds TSB, Britain's biggest current account provider, turned up the heat in the current account market this week, raising the interest rate on its `Plus' account range from 4% to 6% AER.

The bank is offering the rate to all new accounts opened before 13^th July 2008 - and in a rare move in today's banking world, to existing customers also (hooray!).

So, if you're currently an existing `Classic account' customer earning 0.1% interest on your current account, you could earn 60 times more interest -- as long as you pay in at least £1,000 per month.

Unfortunately, life for existing customers is never easy, and you will need to contact Lloyds TSB to request the higher interest rate. You can do this via internet banking, in-branch, or over the phone (ask to be put through to the `Added Value Accounts' department, who will do this for you).

Battle Of The Current Accounts

This is only one of the latest moves by a bank attempting to reel in deposits from new customers.

The current account market has been notoriously hard to conquer, with research by both Smile and Age Concern finding that Brits are more likely to get divorced than switch their bank account.

However, now couldn't be a better time if you're looking to switch, with several banks falling over themselves in an attempt to win your business.

Here are the top paying current accounts at the moment, together with what they offer:

*Interest rates apply to the first £2,500 (otherwise 0.1%) on all accounts apart from the Coventry First account, for which the upper limit is £250,000.

As you can see, Lloyds TSB are not the only bank trying to reel you in with a great rate. Alliance and Leicester's Premier Direct account pays a market leading 8.5% credit interest on balances up to £2,500.

If you prefer perks to profit, A&L's 'Premier' account only pays 1% credit interest, but comes packaged with free European travel insurance. You can also take advantage of its exclusive Premier Regular Saver, paying 12%.

Abbey also has a headline grabbing account which pays 8% credit interest for the first 12 months. However, as several Fools pointed out below my last article, its customer service still leaves a lot to be desired.

One bank which came out trumps among the comments wasn't even a bank at all! Coventry Building Society was praised for its good service, with its current account paying an in-credit interest rate of 5.6% AER for the first year.

In addition, unlike many other table topping rates, Coventry doesn't have an upper limit on qualifying credit balances (well, £250,000, but how many of us have that lying around in our current accounts?). In addition, you'll continue to earn a high rate, currently 4.75% AER, after the initial 12 months has elapsed.

A £100 Welcome Bonus

It's not just interest rates the banks are trying to lure you in with. Widely-praised First Direct will hand you £100 if you switch your current account to them. What's more, the bank is so confident you'll like their service that they'll give you another £100 if you decide to leave them after six months.

Bear in mind that you'll need a monthly salary of at least £1,500 to qualify, and unlike its competitors, the account doesn't pay any credit interest. Still, the bank provides a sweep facility which can automatically move funds into a higher interest savings account if required.

So, whatever you look for in a current account, be sure to take advantage of the great deals available at the moment. After all, convenience may be one thing, but if you're getting a raw deal from your bank, then perhaps it really is time to switch...

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