Savings lost by current account holders' inertia Go compare with our comparison table

Savings lost by current account holders' inertia

12 March 2010 / by Andy Davies

Millions of loyal current account holders risk missing out on better deals due to their failure to switch providers, Santander has warned.

Research from Santander Current Accounts has found that while a quarter of Brits have switched insurance providers in the past year in search of a better deal, 70 per cent of Brits – more than 34 million people – have not switched their main current account since 2000.

According to the Spanish bank, which now owns Alliance & Leicester, current account holders could earn up to £125 in interest in the first year and enjoy an interest free overdraft for the first 12 months by switching to Alliance & Leicester's Premier Direct Current Account which pays 5.00% AER on balances up to £2,500.

However, despite the savings that can be made from switching providers, three quarters of Brits say they have no plans to move providers in the near future.

Encouraging current account holders to review their finances, Helen Bierton, head of current accounts at Santander, has stressed the importance of looking around for the best deal "to make your money stretch as far as it can".

"One way of making your money stretch further, which many people either ignore or are not aware of, is to switch your current account. Whereas many people see how much they can save by switching their insurance for example, people don't see the benefits of switching current account.

"However, by switching current accounts you can start earning a great rate of interest which can earn you up to up to £125 in the first year," she said.

© Fair Investment Company Ltd

 

 AccountInterest (AER)Overdraft RateFunding Required*Fee pmFeaturesApply
5.00%**0.0%£0.00NilUp to £300 Cashback when you switch your current accountMore Info >
0.00%Daily fees on agreed overdrafts£0.00Nil£5 cashback every month you deposit £1,000. More Info >
Up to 3%19.30%£0.00NilEasy switching process. Earn up to 3% AER on balances of £3,000-£5,000 with Vantage. £10 overdrafts buffer and grace period.More Info >
0.0%19.30%£0.00 NilTelephone and Online Banking - Simply, free and easy to useMore Info >
0.0%18.30%£300.00£5pmBenefits include mobile phone insurance, cardholder protection and much more for £6.50 per month.More Info >
0.0%18.30%£300.00£15Benefits include Travel Insurance, mobile phone insurance, breakdown cover and much more for £15 per month.More Info >
0.0%17.90 %£500.00£12.95Could provide you with up to £500 of benefits & services a year. £6pm for first 3 months. ID theft and personal safety assistance. Text Banking. HSBC Advance Specialist 24/7 on hand.More Info >
0.0%19.90 %£500NilOverdraft, award-winning online banking, access to 4% savings accountMore Info >
0%19.89%£0.00NilA flexible current account for day-to-day banking. Overdraft (subject to eligibility) - extra breathing space for your finances. Over 18s only. More Info >
0.0%19.49%£100.00 £12.95For the third year running, the independent financial research company Defaqto gave Advantage Gold their 5 Star rating for product features, benefits and charges (February 2011).More Info >
£0.0019.24%£100.00£12.95Mobile phone insurance - includes iPhones; Green Flag car breakdown cover - even on your driveway; Annual world wide travel insurance - includes winter sports.More Info >
0%19.89%£0.00NilA flexible current account for day-to-day banking. Overdraft (subject to eligibility) - extra breathing space for your finances. Over 18s only. More Info >
0%18.9%£700 per monthNilPreferential rates on savings and loans. Free European travel insurance, discounts on home insurance. No monthly fee. (Pay in a minimum of £750 per month to get the benefits.)More Info >

*Some current accounts require customers to pay in a minimum amount each month.

**See Terms and Conditions