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Current account holders seek long-term value

Current account holders seek long-term value

Category: Banking

Updated: 20/05/2013
First Published: 20/05/2013

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 It is now over 6 months old so the content may be out of date.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 growing number of customers intend to shop around and choose a current account that offers the best value in terms of ongoing benefits, rather than upfront rewards.

Research by Santander found 31% of people will switch to an account offering the best credit interest rates, regular mobile phone and email message alerts and flexible branch opening hours over the next year, compared with 26% questioned in a previous study.

The findings have implied that more consumers are looking at overall value prior to committing to an account in order to achieve the best and most suitable deal, rather than being taken in by attractive promotional incentives.

A number of providers offer accounts with upfront benefits such as cash incentives for switching, short-term offers on credit interest and interest-free overdrafts for limited periods.

Whilst these features may appeal to many people initially, recent studies have helped to highlight the importance of looking past the immediate benefits of current accounts to ensure customers choose a package which suits their financial and lifestyle needs in the long run.

Head of banking at Santander, Hetal Parmar, said: "If you plan to switch, it is important to consider the ongoing and longer term value of a new bank account, not just the up-front incentive that might be available."

New rules are due to be introduced this September to reduce the bank account switching process to a maximum of seven working days.

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 Any products featured may be withdrawn by their provider or changed at any time.

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