Alliance & Leicester has launched a new Internet and telephone-based current account for business banking customers which is free to firms able to maintain a balance of at least £5000.
The launch of the new account comes as competition for business customers intensifies among UK banks. It follows the recent launch by telenet bank Intelligent Finance of a new account which offers a headline 4.01% interest rate on direct access savings accounts for sole traders.
A&L's new account is free to firms able to maintain a balance of at least £5000. Customers are allowed up to 100 charge-free transactions per month and receive interest on credit balances - currently 0.75% gross AER on balances of £4000-plus and 3.56% above £100,000. It follows the introduction last month by the UK bank of a specialist business start-up service which includes 12 months' free banking and 24-hour online and telephone support.