THE battle for current account customers’ business is heating up as two major providers have unveiled moves to make their deals more attractive.

Barclays has announced plans for a new rewards programme which customers can opt into, paying them fixed cash rewards of up to £180 a year in return for a fee of £3 a month.

Meanwhile, as part of efforts to re-build its ethical reputation, the Co-operative Bank has reduced or removed some overdraft charges.

Barclays’ Blue Rewards programme is set to launch on its banking app on Monday before being rolled out to online banking later next week.

To be eligible, customers must have a Barclays current account as their main bank account, depositing a minimum of £800 per month and having two direct debits paid out of that account.

Those who sign up will get fixed cash rewards, no matter if they are in credit or overdrawn.

Barclays said it plans to expand the rewards programme over time, adding other products such as savings and personal loans.

The Co-operative Bank said it had revamped the overdrafts attached to its current accounts, which it said will make customers better off overall and reduce the chances of them being caught out by unexpected charges.

The new overdraft offering includes a reduced cap on charges, meaning customers will pay no more than £60 per quarter in fees, down from a maximum cost cap of £150 per quarter. The daily fee for going over an overdraft limit or overdrawn with no formal overdraft in place has been halved, from £20 a day to £10 per day.

Co-op said the development of the new overdraft has been shaped by listening to customers.