Alliance & Leicester and First Direct are both offering £100 to bank customers who switch their current accounts. A&L is offering the bait to encourage people to move over to its Premier Account range. At the same time First Direct is similarly giving account switchers £100, with the promise that if  they  are not happy after six months, the bank will help the customer move to another bank and hand over yet another £100.

The First Direct offer is for new customers only, who must open a  1st Account and transfer income of at least £1,500 within 3 months to qualify for the £100 reward.

The battle for current accounts  follows the announcement by Halifax' of its new Reward Current Account, which is due to launch in February. This will offer offers customers £5 interest on their account each month regardless of balance held.

Andy Muddimer, current account manager at Alliance & Leicester said: "After what is likely to be an expensive Christmas for many people, the New Year is an ideal time for people to start sorting out their finances, and in particular to take a closer look at their current account.

"It is a concern that two thirds of banking customers have not switched current accounts in the last decade. Alliance & Leicester is providing a great reason to review your current account, and make your money stretch further."

Meanwhile Kevin Mountford, head of banking at comparison site moneysupermarket.com said: "2009 may well be the year of the current account after a period of relative stagnation as providers wait to see the outcome of the ongoing OFT court case on bank charges.  

"At least two major providers have initiatives due early this year, as they step up the battle for the lucrative current account market.  Consumers need to be vigilant though and look carefully at the different offers to see which will suit their needs.  For example the right current account for a customer who never goes overdrawn will be different than for a customer who does dip into the red regularly."

However he advised caution over the A&L deal: "While £100 to switch accounts may seem tempting, consumers need to look at the bigger picture. The offer is only available to their Premier account range, which pays just 1 per cent in-credit interest - for those who are always in credit, HBOS' High Interest Current Account may be a better deal, paying 2.5% interest.

"Having said that, it's worth looking at A&L's offering for the overdraft facility - at 0 per cent for a year, this could prove a winner. 2009 is expected to be a tough year for consumers, and likely to be more about saving money where possible, rather than making it, so this could really help."

He also advised customers to check the small print of the Halifax Reward account. "February will see HBOS launch its Reward Current Account, which will offer consumers £5 per month in interest, regardless of the balance held. But again, it's important to look at how you will use the account - with an overdraft structure that charges £1 per day for up to £2,500, this could prove costly, even if you only go into the red by a couple of hundred pounds."

Louise Bond, Personal Finance expert at comparion site uSwitch.com, said: "Now more than ever, it is important for consumers to make sure that their money is working as hard as it can for them. Switching current accounts is a very easy way to do this. Those who are regularly overdrawn should make sure that they have an account that charges the lowest rate of debit interest and usage fees, while those who are regularly in credit should make sure that they are rewarded for this. We urge consumers to always read the small print to ensure they are getting the right account for their needs."

Kevin Mountford added: "There are really only three propositions in play in the current account market - price, service, and tactical initiatives. Past experience at moneysupermarket.com has shown tactical initiatives, such as the Alliance & Leicester switching campaign, are the ones that seem to get consumers to take action in a market that generally sees low levels of switching. Consumers are looking to make the most of every penny at the moment, and an offer of £100 to switch to a pretty good, if somewhat basic, account can't fail to lure new customers."

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