SWITCH IT UP

IT ALL ADDS UP: Switching banks can make good financial sense

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IT ALL ADDS UP: Switching banks can make good financial sense

ALTHOUGH millions of people stick with the same bank for many years, that loyalty often goes unrewarded.

A Which? Money survey last year found as many as four in 10 people had stayed loyal to the same current account provider for over 20 years, with customers of some of the biggest banks even more likely to have stayed put.

But while such unquestioning loyalty may be because customers think there's not much difference between account features and bank services, that's just not the case, stresses Sam Richardson, deputy editor of Which? Money.

Every year the consumer organisation does an in-depth analysis of the different current account options on the market, analysing product features like fees, overdrafts, charges and perks, and asking account holders how satisfied they are with their banks' service, and Sam says: "At first glance, a current account seems like the most basic banking product available, and as long as you've got somewhere to receive your salary and pay your bills, you may think one is much like another.

"However, that couldn’t be further from the truth - we found huge disparities between the best and worst performers, not just in terms of account features but customer service, too."

So, just like you'd do with other goods and services, the solution is to compare your bank's offerings with other providers, he advises.

And Peter Tyler, director of personal finance at UK Finance, which represents the UK financial services industry, says: "The UK current account market is highly competitive and banks and building societies have a range of accounts available for customers to choose from."