A NEW low rate on credit card balances has been introduced by Alliance & Leicester.

The rate, of 1.9 per cent, is the lowest yet offered by A&L and is applicable for the first six months after opening. MoneyBack can also be earned on new purchaaes - last year customers received more than £21.7 million back from the scheme.

A&L's MoneyBack credit card, which pays up to 4 per cent on purchases, is the UK's original cash reward card. Typical payouts each January are between £50 and £200 per customer and since the launch, card holders have been paid a total of £53.4m.

A&L is also offering teenagers who open a Cashcard account a free subscription to their choice of the popular magazines, Just - 17, Smash Hits, Nintendo, Bliss or Match.

The Cashcard account pays interest up to 3.75 per cent AER on credit balances and provides 24-hour telephone banking.

The account is available to 11-18 year-olds and the offer is for all account openings before December 31.