Battle of the bank accounts

The battle of the bank accounts is hotting up. Since the start of the month both Abbey and HSBC have upped their game when it comes to securing your clients\' bedrock for the sale of other financial services products.

Abbey is playing with the idea that borrowers will get better deals on mortgages if they sign up to current accounts. Meanwhile, HSBC has mortgage rates as low as 4.99% for customers using its Plus and Premier accounts.

The idea of banks offering customers better mortgages if they do all their banking with them is not new but this latest drive highlights how important cash flow is becoming to lenders.

I’ve never been one for putting all my eggs in one basket. I’m not keen on offset mortgages purely because I like to have some control over my finances.

I like having my earnings going into one bank while keeping my mortgage and savings with others. It also means that one lender can’t freeze all my accounts.

These deals may grab the headlines but I’d recommend reading the small print.