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Think before you switching accounts

Think before you switching accounts

Category: Money

Updated: 31/10/2008
First Published: 16/11/2007

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 It is now over 6 months old so the content may be out of date.

As far as Banks and Building Societies are concerned, current accounts are the gateway to cross-selling you other profitable accounts and services.

Whilst some Banks and Building Societies take a very proactive approach to recruiting new customers by offering incentives and attractive terms, others will rely on customer apathy as a retention strategy and continue to offer very basic and uncompetitive deals.

One of the important things to take into account before looking to switch to a new current account is to understand what features of a current account you will be using. For example if your balance sometimes swings into the red just before your pay arrives, it's probably not worth plumping for an account that offers a high rate of credit interest as you'll find that the interest cost for your overdraft will more than wipe out any benefit you may have received.

As well as checking the interest rates on both credit and debit balances, it is also worth finding out what fees you will have to pay if you go overdrawn without prior arrangement or if you exceed your agreed overdraft limit. These fees can hit your pocket hard, so it is best to understand what you could be liable to pay, rather than finding out when it appears on your statement.

Most Banks and Building Societies now offer a dedicated switching service to help you transfer your direct debits, standing orders and salary payment to your new current account provider. If you are one of the many current account holders still receiving a paltry 0.1% interest on your account, why don't you take a few minutes to check out our Current Account Best Buys and move to an account that will reward and value your custom.

With the opportunity to earn fifty or sixty times as much interest on your current account balances,the incentive to switch makes it pretty much a no brainer!

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 Any products featured may be withdrawn by their provider or changed at any time.

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