Halifax launches 4% current account

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The Independent Online

The Halifax caused banking stocks to fall by announcing a new current account, to be launched in January, offering customers a 4% interest rate.

The Halifax caused banking stocks to fall by announcing a new current account, to be launched in January, offering customers a 4% interest rate.

The rate compares with an average 0.1% interest rate for similar accounts at rival banks.

The move has sparked fears of a possible price war as the major companies battle to hold on to customers, particularly in the face of stiff competition from the internet.

The account will also charge 10% on overdrafts, compared to much higher rates at the likes of HSBC and Natwest.

Customers using the account, will need to pay at least £1,000 a month into the account to receive the 4% rate.

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