The Week Unzipped: HBOS to personalise credit card charges

HALIFAX and Bank of Scotland have revised credit card charges and introduced a single rate specific to individual customers and their card habits.

From August, credit card customers will move to a personal rate based on an average of the interest charged on their card between January and March 2011.

There will no longer be different rates charged for purchases and cash withdrawals. From November, the standard rates offered will be made up of Bank of England base rate plus their personal rate.

The group pledges to explain why they have moved their rate. Consumer group Which? warns that tracking such a low base rate will lift the cost of borrowing in the short to medium term as interest rates are expected to increase.

Easy money

Sainsbury's Finance has increased the rate on its easy saver account by 0.1 per cent to 2.6 per cent and boosted its online saver rate by 0.15 per cent to 2.85 per cent. Online savers can make up to three penalty-free withdrawals per year while easy saver customers are permitted five. Customers investing more than 5,000 in an easy saver account will receive double Nectar points for two years.

Fixed rate cut

Nationwide cut its three-year fixed mortgage rates by up to 0.2 per cent. The new rates start at 3.79 per cent for house purchase, remortgage and switch customers with a 30 per cent deposit and 999 fee. New customers can borrow with a 15 per cent deposit at rates starting from 5.29 per cent.

Fee-free trackers

HSBC has removed the fees on tracker mortgages until June 5. Borrowers can also apply to switch from a HSBC tracker rate to any fixed rate without paying early repayment charges.

Bond offer

Yorkshire Building Society launched a two-year fixed-rate bond paying 3.95 per cent. Savers can open the account in branch, online or by phone.