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| Sunday 20 May 2012 |
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Don't put up with a poor deal on your current account. It's never been easier to move your money, so use this website to find the best bank account deals and ditch your current provider.
Research shows people are more likely to get divorced than change bank
account, however, the consensus among
consumer groups is that this loyalty is misplaced and makes no sense when
all you get in
return are miserly rates of interest on balances in the black, and sky
high charges on balances in the red as well as poor customer service The inertia among bank account holders is helping to boost the profits of the big high street banks. So how do you find the best deal? The most appropriate account will depend on your circumstances. If you have a tendency to slip into the red, you'll appreciate how expensive overdrafts can be, with many banks charging interest as well as hefty fees. If you always stay in the black, your first priority should be to source an account paying a competitive rate of interest on credit balances. Interest
on credit balances If you would prefer to keep your money in your own pocket rather than swelling your banks' coffers, you should take a moment to check the interest you're getting paid on balances in credit as some banks pay as little as 0.1%. By switching elsewhere you can earn significantly more!
Overdraft facilities If you rely on an overdraft
facility you need to check the rate you are being charged on your overdraft.
The average authorised overdraft is around 15%.
Research by consumer group Which? reveals that, with the most expensive account,
someone who goes overdrawn by £500 for two weeks every month could pay
over £200 a year. However by switching to one of the best buy accounts,
the overdraft would cost about £13.
Switching
The big high street banks rely on their customers' misplaced faith to go on boosting their own multi billion pound profits, however with increased competition in the current account account marketplace, you no longer have to settle for a bank account which pays a pittance when in credit and charges hefty overdraft rates if you slip into the red. There appears to be a belief among UK consumers that switching bank accounts is difficult. This is a complete myth as moving your current account is straightforward. Once you have contacted your new bank and filled in the forms, they will do all the hard work for you and arrange to have all your direct debits and regular payments transferred. IncentivesMany banks offer incentives to attract new customers such as high credit interest, low rates on overdrafts, cashback and access to competitive mortgage products. However, examine the true cost of these offers before signing on the dotted line as they may not always offer the value for money that they first appear to. You also need to take into consideration the
length of the as some accounts offer an introductory rates for 12 months, so unless you're prepared to switch again
in 12 months time, it might be worth opting for an account that offers a lower rate for a longer period. |
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Welcome
Six out of seven adults (85%) have a current account and even though
they probably have a greater impact on our day-to-day lives than any
other aspect of our personal finances, the vast majority of us stick
with one tried and trusted bank throughout our adult life.