Changing current account could gift Brits £200

06 May 2008 / by Joy Tibbs
People in the UK are missing out on the best current account deals because they are unaware of better offers and do not shop around. According to Moneysupermarket.com, this could be costing some consumers more than £200 without them even knowing.

Its study found that more than a quarter of people in the UK have just had one current account, showing a reluctance to find out whether they are getting the best deal in terms of interest.

Head of savings at Moneysupermarket.com, Kevin Mountford, said: "Consumers are increasingly looking at ways to save money in the current environment, but forgetting to look at ways to make money. It is astonishing a quarter of people have only ever had one current account, when providers are continually introducing new rates to compete with each other."

Nearly three quarters did not nominate Alliance and Leicester, Abbey or Halifax as having the highest interest rates on their current account, even though the three banks have heavily publicised their respective 8.5 per cent, eight per cent and 6.17 per cent rates.

Moneysupermarket.com found that people living in London and East Anglia were the least clued up about current accounts, with just one in five citing either Abbey, Alliance & Leicester or HBOS as having the highest rate. And this is cause for concern according to the comparison site, which suggests that customers switching from a Barclays current account to an Alliance & Leicester account could potentially earn an extra £210 in interest in a year.

Northerners were the least likely to have ever switched their current account, with 31 per cent having kept the same provider since opening their current account.

Kevin Mountford added: "It's a shame consumers seem hesitant to change current accounts as most providers make the process as easy as possible. If you could buy the same TV for £210 less somewhere else, you wouldn't think twice; however, when it comes to current accounts, it seems consumers are happy to miss out."

In light of the liquidity shortage, banks have also been hiking the interest rates offered on their savings accounts as they strive to increase their savings deposits.

©Fair Investment Company Ltd