Abbey Banking has announced that it is offering an interest free overdraft for 12 months to people who switch to its preferred overdraft rate account. After the interest free period, customers will revert to an advance overdraft rate of 12.9%.
Abbey said that the 12 months interest free period will save GBP65 for someone who had a typical overdraft of GBP350.
Samantha Owens, head of personal finance division at Moneyfacts.co.uk, said: Over the past few months we have seen borrowing costs increasing across all sectors of the personal finance market. It is good to see a current account provider buck the trend by offering a competitive deal to those looking to switch their current account.