‘Free money’ and 10% interest: carrots banks are

Better deals are on offer in the battle to tempt new current account customers. But, be warned, there are a few strings attached

The battle to attract current account customers is hotting up, with two banks offering £175 “free money”, and a third tempting people with a 10% interest rate.

The payments from Santander and First Direct, and the inflation-busting interest rate offered by Virgin Money, are the latest carrots being dangled in front of potential customers in an attempt to persuade them to switch current accounts.