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Abbey reward account pays 6% interest

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Abbey is offering customers 6% interest and a range of benefits, including worldwide travel insurance, with its new reward packaged current account.

The new reward packaged current account from Abbey (www.abbey.com) pays 6% interest and offers a range of benefits for just £10 a month.

The benefits include:

• Credit interest of 6% on balances up to £2,500, fixed for one year, when you credit your account with at least £1,000 a month
• Annual worldwide travel insurance, including winter sports cover, for two adults and up to four children
• Green Flag motoring assistance, including roadside assistance and home call
• An interest-free overdraft of £100
• Identity protection, card loss assistance and key protection
• Commission-free travel money
• Leisure benefits, including savings on days out, hotels and restaurants.

If you make the most of all the benefits, you could save up to £310 a year, according to Abbey.

However, Michelle Slade, analyst at financial information company Moneyfacts (www.moneyfacts.co.uk), warned that “packaged accounts do not suit everybody.”

She said that the list of benefits on this account are impressive and make it stand out from the competition, but emphasised that to make it worthwhile, you must “make sure you get your money’s worth from the benefits.”

Chris Eagle, commercial manager at CreditChoices.co.uk, said: “If you fancy getting 6% interest but don’t think you would use the benefits on this account sufficiently to justify the £10 a month fee, Abbey do offer an attractive alternative.

“The Abbey Bank Account is completely free. Like the reward account, you can get 6% interest on balances up to £2,500, fixed for one year, when you credit your account with at least £1,000 a month. Plus, it will match your current overdraft up to £5,000.”

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