One major financial services provider has added two new current accounts to its range of finance products.
Spain-based banking giant, Santander, recently announced the addition of two new current account products. Both new offerings boast attractive interest rates, in addition to overdraft facilities that the financier hopes will be rewarding to customers.
The provider of personal and business bank accounts now offers a five per cent interest on balances of as much as £2,500 on its new Preferred Current Account. The account also has overdraft fees that Santander executives have referred to as ‘preferential.’
The financial services provider described its new Everyday Current Account as both straightforward and simple to use. There are no minimum monthly credit requirements to be met by banking customers that take up the account.
Santander banking director, Nici Audhlam-Gardiner, stated that the launch of the two new offerings highlights the bank’s efforts to provide current accounts that its customers can understand.
Santander is also offering a £100 bonus to customers from other banks if they apply for the new Preferred Current Account online. However, recent research conducted by consultancy firm Promise indicated that consumers are likely to not be swayed by such an enticement.
Customers rarely switch banks because things are better at an alternate provider but because things get worse at their existing one. Such motivating factors listed by respondents were experiencing poor service at their current bank, or seeing new and higher charges introduced.
However Promise director, Clare Fuller, said that customers were still reluctant to switch providers even in the face of dissatisfaction. Ms Fuller stated that many consumers fall back on the old adage that the devil they know is better than one they do not. Furthermore she believes that many consumers feel switching would not lead to a better banking experience.