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Credit card providers Abbey and Alliance and Leicester have increased their credit interest rates to 6.00% AER.

According to the banks, the 1% increase will be on Abbey's Preferred In-Credit Rate current account and Alliance and Leicester's Premier Direct and Premier 50 accounts.

The new rate will offer customers certainty for a year as the rate will be fixed for this time. It is available on accounts from today.

According to Gillian Almond, manager for Abbey and Alliance and Leicester current accounts, current account customers could earn 60 times more than the interest they could receive from other banks.

Michelle Slade, finance expert from Moneyfacts.co.uk, commented: "Current accounts are an important part of any customer's financial portfolio and with many of the other high street providers paying no interest at all, customers really should consider switching."

Abbey has also recently relaunched its Zero credit card which offers fee-free foreign usage on spending abroad.

Customers receive an introductory 0% introductory rate on balance transfers for 12 months when they sign up for the credit card.

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** 16.9% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.9% p.a(variable). **
	Virgin Credit Card
	20 months	3 months	16.8%
** 16.8% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.8% p.a(variable). **
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	22 months	3 months	17.5%
** 17.5% APR representative (variable). Based on a credit limit of 1200 and purchase rate 17.5% p.a(variable). **
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