Consumers Loath to Switch Accounts Despite Potential Savings

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Weary customers need to take advantage of the savings to be made by switching their current accounts, says CreditChoices.co.uk

but few people have this problem.

Weary customers need to take advantage of the savings to be made by switching current accounts, says CreditChoices.co.uk

Despite savings of up to £160 - sparked by a high-street bank war this summer - consumers are loathed to switch their current account.

Chris Eagle, CreditChoices.co.uk commercial manager, says: "In spite of measly returns of only 0.1 per cent on the majority of current accounts, 75 per cent of customers told us that they had stayed loyal to the same bank for more than five years."

This year's current account war saw some banks - such as Alliance & Leicester - offering as much as 6.5 per cent on in-credit balances, while others offered incentives of up to £100 to switch, but still many people remain faithful to their bank.

Eagle explains: "Although many people are aware of the savings they could make by switching current account, 46 per cent think it's easier to stay with one bank, and are willing to settle for a poor return in order to keep things simple."

Other switching deterrents include:

  •     Having other financial products with your bank (22 per cent)
  •     Not having enough time to change (nine per cent)
  •     Being worried that it will affect credit ratings (four per cent)

"It has never been easier - or more profitable - to switch current accounts," says Eagle.

"Banks automatically transfer all of your direct debits and standing orders to your new account and customers should be up and running in their new high-interest accounts within 10 days," he explains.

Of the 24 per cent of respondents who had switched, three quarters said it was an easy process, with banks doing most of the work.

"Anyone still worried about complications can simply keep their old account active for a couple of months, in case any payments haven't been switched," concludes Eagle, "but few people have this problem."

About Credit Choices

Credit Choices - http://www.CreditChoices.co.uk is a UK comparison service which allows consumers to compare current account, loans, credit cards and savings accounts, so that they can choose the right product for them. Credit Choices also have a wide range of impartial guides to advise consumers on the latest financial issues, so that they can manage their finances effectively and stay out of debt.

What makes CreditChoices.co.uk different:

  •     Wide range of consumer guides and advice
  •     Detailed product information to compare credit cards, loans savings and current accounts.
  •     Comprehensive debt centre which advises consumers on how best to manage their finances to stay out of debt.
  •     Up-to-date money news regarding the latest development affect consumers finances.

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Andy Williams
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