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Rate roulette for current account customers

Recent changes to the base rate of interest have lead current account providers to switch rates on current accounts.

Several current account providers changed the margins on bank accounts by lowering the amount awarded on credit balances and increasing overdraft charges, according to one price comparison website.

Nationwide, Intelligent Finance and Smile have all cut credit interest rates in line with the Bank of England's two recent base rate drops,

However, the benefits of three base rate rises in recent times were not passed on to consumers, Moneyfacts.co.uk suggests.

"It may well be that the reasoning behind some of these changes is the ongoing credit crunch," explained head of personal finance Samantha Owens.

"But with further base rate cuts predicted during 2008 we will just have to wait and see if the institutions use the next base rate as an opportunity to increase their margins further."

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