MoneyExpert sees switching current accounts reach new high

07 February 2007
Almost 1.4 million UK bank customers will switch current account provider over the coming six months, MoneyExpert.com claims.

Its research shows that customers are hurrying for the exit amid anger against banks over penalty fees for unauthorised overdrafts and bounced cheques, which it says cost customers an average £32 each time.

Savvy banks are latching onto customers' disillusion and offering strong switching incentives including low interest rates on authorised overdrafts, MoneyExpert noted.

"Anger over bank charges is adding to the pressure on banks as customers realise that it is possible to get their money back," commented MoneyExpert chief executive Sean Gardner.

"Customers have got the message that it is relatively straightforward to move bank and that there are a range of good value deals out there," he added.

But customers should suit their new account to their needs, checking that its offers on overdraft rates, interest rates and penalty fees correspond to their own banking habits, he stressed.

Research from Abbey recently showed that although 65 per cent of people fear switching current account provider would be a hassle, 90 per cent of those who have done so describe the process as 'easy'.

To compare current accounts, click here.

track© Adfero Ltd