A current bank account is a type of bank account offered by banks and building societies. People use Current Accounts for standard everyday transactions such as deposits and withdrawals of money and are often used to receive payment of salaries. Current Accounts offer a range of benefits to the user including cheque books, cash withdrawal cards, direct debit facilities, standing orders and interest paid on the money held within them. Interest and benefits offered by Current Accounts will vary greatly from institution to institution.
We’re getting better at switching financial products and shopping around for a better deal but changing current account provider is something that continues to elude most of us.
Six out of ten adults have never switched their current account according to research from Alliance & Leicester and 84% said they have no plans in doing so over the next twelve months.
There are 54million current accounts in the UK, making them big business for the banks: the banks know that once they’ve got your custom, you aren’t likely to move elsewhere which means they can get away with offering uncompetitive deals.
The big four banks – Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland, which owns NatWest – control more than 70% of the market even though their standard current accounts pay paltry, and in the case of Barclays and HSBC no, interest. Their authorised overdraft rates are also uncompetitive so why do so many people stay put?
The common perception is that switching current account is a lot of hassle for little gain but this isn’t necessarily the case. Many banks now have dedicated switching teams who ensure the transfer process runs smoothly and there are some great current account deals to be had. So it’s time to stop being loyal to your bank and get more from your current account.