Teens get access to high-interest current account
Competition is heating up for teenage pocket money today as Alliance & Leicester launches a high-interest current account aimed at 16-21 year-olds.
The Premier 21 account offers an interest rate of 10% AER and an emergency £10 buffer zone, giving teens access to the last few pounds in their account via an ATM, even if the balance is below £10.
Helen Palmer, spokesperson for Alliance & Leicester, said: “Many high street banks overlook the needs of young people.
“Premier 21 offers young people the opportunity to maximise their hard-earned cash and make their pay packet stretch further.”
There is also an overdraft facility for those aged 18 or over, which concerned some personal finance experts.
Malcolm Hurlston, chairman of Consumer Credit Counselling, said: “It is good for teenagers to have access to banking and borrowing – but the nil per cent on overdrafts is like credit card concessions for students – a trick as well as a treat.”