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Is it time to make a current account change?

Is it time to make a current account change?

Category: Banking

Updated: 25/11/2010
First Published: 25/11/2010

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 It is now over 6 months old so the content may be out of date.

One of the easiest ways to save some extra money without cutting into your hard earned cash is to switch your current account provider.

Yet a new report reveals that 93% of current account holders are still losing money by not switching to a better deal.

This equates to a collective £2.2 billion in lost interest, according to the research by Datamonitor on behalf of Santander.

The report also found that when it comes to finding the best deal, consumers were far more likely to switch their motor insurance (39%), home insurance (33%), pay monthly mobile contract (17%) and savings account (15%), rather than their current account (7%) in the past 12 months.

"Consumers are much more likely to switch products like car and home insurance than current accounts, suggesting current account holders are unaware of the great deals available and so hold accounts with basic functionality and no extra benefits," said Rod Logan of Data monitor.

The traditional excuses that switching your current account provider takes too much time and is too much hassle just won't wash any more.

Your new provider will contact your old one for a list of your direct debits and standing orders, before asking you to confirm which ones you want to move.

Letting your employer, pension provider and anyone else who pays money into your account know of your new current account details will be about as far as your responsibilities have to go.

The transfer should take no longer than four weeks to complete, while you'll even be reimbursed if you end up out of pocket should anything go wrong.

In addition to better rate of interest when your account is in credit, many providers will now also pay you money if you choose to switch to them.

"Traditionally, people have kept their current accounts for a long time and many providers have become complacent because of this, offering poor rates and little or no rewards," commented Gillian Almond, head of Santander Current Accounts.

"However, having a better current account can make a significant financial difference to consumers so it's important for them to understand that it's worth shopping around."

To find the current account to suit you, check the Moneyfacts.co.uk Best Buy tables, which showcase the best products on the market.

They include the Halifax Reward current account, which pays £5 per month.

For those that are looking for an incentive to switch and deposit more than £1,000 per month, Santander offers £100 to new current account customers and a great rate of 5% on balances up to £2,500.

Other current accounts to consider include those from Barclays, Co-operative Bank and HSBC.

Compare more current accounts

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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