At last young workers get a better deal

High-street banks may be fighting for our current account business, but one group of customers often overlooked is school-leavers heading straight into employment.

While university students are enticed with generous packages because they are seen as good business for the future, those who steer clear of higher education have not had access to services such as cards and overdrafts.

But with more and more people now shunning university because of financial fears, Alliance & Leicester says it is working to "recognise the needs" of this group with the launch tomorrow of the Premier 21 account for those aged 16 to 21.

With a minimum funding requirement of £250 a month, Premier 21 will pay a high rate of 10 per cent on balances in credit - although this is fixed only until July 2008.

You can only keep up to £1,000 in the account; go above this and the rate drops to just 0.1 per cent.

Account-holders aged 18 or over can also get access to an overdraft facility of at least £250, as well as a Visa debit card, subject to a credit rating.

Other features include a £10 "buffer zone", giving customers emergency access to the last few pounds in their account via a cash machine - even if their balance is slightly less.

Customers will be able to check their account online and over the phone, including via their mobiles. They will need internet access to view statements and manage the account.

"There is not much on the market for this group," says Sue Hannums of independent financial adviser (IFA) AWD Chase de Vere. "This is a really good account paying a fantastic rate, and a real challenge to the big four banks."

She adds that the nearest equivalent is the FlexAccount from Nationwide building society, paying 4.25 per cent. "But you have to fund this account with at least £1,000 a month or that rate drops away."

Mike Naylor at the price- comparison service uSwitch says A&L has "shaken up the market".

"It's refreshing to see a provider encouraging young people to get the best deal for both credit balances and overdrafts," he says. "But consumers should be aware that authorised overdrafts are subject to a monthly charge of £3 when utilised."

He adds that Premier 21 is "unique" in not issuing charges for transactions that do not have sufficient funds in the account to cover them. This, though, is slightly offset by the unauthorised overdraft. "Dip into this and you face a charge of £3 per day."

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

PROMOTED VIDEO
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Ashdown Group: Market Research Executive

    £23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

    Recruitment Genius: Technical Report Writer

    £25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

    Recruitment Genius: Web Developer - PHP

    £16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...

    Ashdown Group: Client Services Manager - Relationship Management - London

    £30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...

    Day In a Page

    Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

    Greece elections

    In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
    Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

    Holocaust Memorial Day

    Nazi victims remembered as spectre of prejudice reappears over Europe
    Fortitude and the Arctic attraction: Our fascination with the last great wilderness

    Magnetic north

    The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness
    Homeless Veterans appeal: Homeless in Wales can find inspiration from Daniel’s story

    Homeless Veterans appeal

    Homeless in Wales can find inspiration from Daniel’s story
    Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

    Front National family feud?

    Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
    Pot of gold: tasting the world’s most expensive tea

    Pot of gold

    Tasting the world’s most expensive tea
    10 best wildlife-watching experiences: From hen harriers to porpoises

    From hen harriers to porpoises: 10 best wildlife-watching experiences

    While many of Britain's birds have flown south for the winter, it's still a great time to get outside for a spot of twitching
    Nick Easter: 'I don’t want just to hold tackle bags, I want to be out there'

    'I don’t want just to hold tackle bags, I want to be out there'

    Nick Easter targeting World Cup place after England recall
    DSK, Dodo the Pimp, and the Carlton Hotel

    The inside track on France's trial of the year

    Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
    As provocative now as they ever were

    Sarah Kane season

    Why her plays are as provocative now as when they were written
    Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

    Murder of Japanese hostage has grim echoes of another killing

    Japanese mood was against what was seen as irresponsible trips to a vicious war zone
    Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

    Celebrities call on David Cameron to take more Syrian refugees

    One young mother tells of torture by Assad regime
    The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

    The enemy within

    People who hear voices in their heads are being encouraged to talk back
    'In Auschwitz you got used to anything'

    'In Auschwitz you got used to anything'

    Survivors of the Nazi concentration camp remember its horror, 70 years on
    Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

    Autumn/winter menswear 2015

    The uniforms that make up modern life come to the fore