press release

Press Release - 15/11/06

FIRST DIRECT’S AGGRESSIVE MOVE HIGHLIGHTS MYTH OF FREE BANKING, ADVISES MONEYNET.CO.UK

Banks fleece current account holders as a matter of course
Interest rates miniscule compared to inflation

“Many commentators are bemoaning the end of free banking following First Direct’s decision to start charging some of its current account holders,” said Moneynet.co.uk chief executive Richard Brown.

“However, it could be argued that the concept of 'free banking' has long been a myth for most people. The vast majority of high street banks pay miserly interest rates on credit balances whilst levying extortionate charges for slipping into the red, meaning that the privilege of holding a current account already comes at a price.

“It is likely that First Direct’s move will prompt a similar reaction from some of its competitors so it will become more important than ever to shop around for the best deals.

“There are still a few companies that are managing to offer fee free banking coupled with decent rates of interest on credit balances and interest free overdrafts. Perhaps this latest round of charges will prove the catalyst for many customers to review their options.

Top Current Accounts if in credit
Provider	Account	Credit Rate	O/D Rate	Notes
Alliance & Leicester	Premier Direct	6.10% up to £2,500	5.90%	Rate guarantee until 31/12/2007. Minimum monthly credit of £500 is required. 0% overdraft up to £2,500 for 12 months
Coventry BS	Coventry First	5.35% up to £250k	N/A	Interest free o/d of £250. Rate includes bonus of 0.85% for first year. Minimum monthly credit of £1,000 is required
Halifax	High Interest C/A	5.12% up to £2,500	15.90%	Minimum monthly credit of £1,000 is required
Cahoot	Current Account	3.75% up to £249,999	11.80%	Internet/Telephone operated account. 0% overdraft of £100. Rate shown is for account with no cheque book. No minimum balance or monthly credit required.

Top Current Accounts if overdrawn
Provider	Account	Credit Rate	O/D Rate	Notes
Alliance & Leicester	Premier Direct	5.90%	6.10% up to £2,500	0% overdraft up to £2,500 for 12 months. Standard EAR 5.90%. Minimum monthly credit of £500 required
Nationwide	FlexAccount	7.75%	4.25% up to £3,000	Minimum monthly credit of £1,000 required
Halifax	Moneyback C/A	7.90%	0.50%	Minimum monthly credit of £1,000 required

Instant access withdrawals can be made at any time with no conditions.

“Our advice is to shop around and look beyond the eye-catching headlines,” added Brown. “The facts are all freely available but unless you ask the question, you won’t discover the downside of a product until it affects you.”

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005