Spotlight On: Alliance & Leicester £100 current account bonus

The deal

Alliance & Leicester will give a £100 welcome cash bonus to anyone who opens one of its Premier current accounts from Tuesday 27 April.

The good points

The account offers free annual travel insurance, an interest-free overdraft for 12 months, plus an interest rate on credit balances of 0.5 per cent.

The bad points

If you go above the agreed overdraft limit, you will be charged a usage fee of 50p a day. You will need to put at least £500 a month into the account to qualify. The £100 is not available to anyone who already has an A&L or Santander account, or who has had one within the past three months.

Conclusion

If you haven't switched current accounts lately, then you could well be stuck in a poor deal. A&L's free overdraft for 12 months could be useful, as could £100 for opening the account. Don't be persuaded by the free cash. Instead, look at all the potential costs according to how you use your current account. If you keep a large credit balance, for instance, you could do better elsewhere.