Current account holders favour familiarity - Banking - News - Moneyfacts

News

Current account holders favour familiarity

Current account holders favour familiarity

Category: Banking

Updated: 16/05/2013
First Published: 16/05/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A study by first direct has found a quarter of current account customers in the UK chose their existing account based on the provider being a well-known high street name.

A further 21% said they had decided to bank with the same provider as their parents, with just 6% claiming their decision was based upon the account offering competitive features and incentives for new customers.

Reflecting a sense of complacency in the current account market, the study also revealed almost half (44%) of people have never switched accounts, choosing instead to remain with their existing provider, despite only 15% stating that they were happy with their current account.

Actions that would prompt customers to switch accounts included receiving poor customer service (54%), closure of local branches (31%) and being offered a better interest rate (34%).

The majority of respondents said they would switch accounts if their provider introduced steep charges or fees, with 60% citing this as a reason for switching.

New rules are due to be introduced in September this year to reduce the current switching process to a maximum of seven working days. The new rules will also see customers refunded for any charges incurred as a result of switching accounts.

What next?

Find out how to choose the best bank account by reading our guides to help you open and manage your bank account

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Simple measures to improve banking security

The payments industry is gearing up for some big changes in the near-future, with the announcement of some key improvements that should help all of us be more secure when banking online.

Top cashback deals for festive rewards

Savvy shoppers will no doubt be looking to make the most of their hard-earned cash at this time of year, but there isn’t much time left to work out which are the good deals and which are the bad, so it’s time to take action!

Top cashback deals for festive rewards

Savvy shoppers will no doubt be looking to make the most of their hard-earned cash at this time of year, but there isn’t much time left to work out which are the good deals and which are the bad, so it’s time to take action!
 
Close