Alliance & Leicester have recently introduced 2 new current account products as of today:
(i) Premier Direct Current Account: 6.1% AER credit interest on balances up to £2500 (fixed until 30/09/2007) and interest free overdraft for 12 months (5.9% typical AER thereafter). At least £500 (salary or otherwise) must be paid into the account each month to maintain it.
(ii) Premier Current Account: 1.5% AER credit interest (variable) on balances up to £2500 and interest free overdraft for 12 months (7.9% typical AER therafter). At least £500 (salary or otherwise) must be paid into the account each month to maintain it.
In addition, if you open a Premier Current Account (NOT a premier direct current account) then you can open a 1 year regular saver account which pays a fixed rate of 12% AER (maximum saving £250 per month - i.e. £3000 over the year) as well as annual multi-trip travel insurance (Europe only).
Furthermore, if you know someone who already has an Alliance and Leicester Premier or Premier Direct Current Account, they can refer you when you open your account and both you and the referrer will receive £50 if you complete this voucher when you open the account:http://www.alliance-leicester.co.uk/home/pdfredirector.asp?pdfnedstat=currentaccounts.CA2312.recommend-friend&pdfurl=http://www.alliance-leicester.co.uk/currentaccounts/CA2312.pdf
Personally, I think the Premier Current Account is a better option given that you can make use of the 12% regular saver and travel insurance.