‘Free money’ and 10% interest: carrots UK banks are dangling to get you to switch

The big banks are dangling a few carrots to persuade customers to switch current accounts. Photograph: Sergey Nivens/Alamy

The battle to attract current account customers is hotting up, with two banks offering £175 “free money”, and a third tempting people with a 10% interest rate.

The payments from Santander and First Direct, and the inflation-busting interest rate offered by Virgin Money, are the latest carrots being dangled in front of potential customers in an attempt to persuade them to switch current accounts.