Hopefully the combination of the quicker switching process and the new customer guarantee launching on 16th September will be the catalyst to get more people to ditch their bank account in search of something more suitable.
However, although increased speed of transfer will be the push that some consumers needed, many others simply won’t switch because they don’t know which account is best for them.
Others will stay put because they feel all banks are much the same.
With a range of different tariffs for accounts in credit and those offering overdrafts, it’s not a straightforward task for consumers to pick the most suitable account for their needs.
Some banks charge interest for overdrawn balances whereas others charge daily/monthly fees – this is just one of the areas that makes account comparisons a nigh on impossible task for the man on the street.
Banks and Building Societies will be ramping up their efforts to recruit customers with short term incentives as we approach 16th September.
Although a golden hello or a short term interest boost may seem appealing it shouldn’t be the basis for choosing a new bank account, it’s more important to choose an account that reflects the way you run your finances.
You need to look at what would benefit you most –a low cost overdraft, credit interest, cash back or cheap/free debit card abroad or in many instances perhaps all you really want is just a consistently good level of customer service – so based on these requirements where should you switch to?
These are my suggestions based on recent research of the current account market:
Best for customers ALWAYS in credit – Santander 123, Halifax Reward or Lloyds TSB (with Vantage)
Best for customers frequently overdrawn – First Direct, Nationwide Building Society and Post Office
Best for cheap debit card transactions abroad – Metro Bank, Norwich & Peterborough Building Society and Nationwide Building Society
Best for customer Service – First Direct and Co-operative Bank
- Moneycomms research reveals that only 26 of the top 50 instant access savings accounts are ‘clean’ and don’t have penalties or restrictions - February 23, 2021
- A Guide to Credit Card Balance Transfers - January 21, 2021
- Where next for NS&I customers? - October 23, 2020