Brits missing out on ‘current account revolution’
January 8, 2007 by admin
Filed under News, News-Banking
The majority of people fail to switch their current account, despite being able to take advantage of better offers.
Research, carried out by Abbey, shows that 60 per cent of Britons have held the same current account for at least ten years, with 18 per cent having never switched.
The bank says this is despite seeing interest rates with some banks soar and is the result of misinformation on the customers’ part.
Abbey looked into the reasons behind the lack of movement and came back with some surprising results.
Of those asked, 65 per cent said that switching account is too much hassle, although research shows that 90 per cent of switchers found it either ‘very easy’ or ‘fairly easy’.
Almost half (49 per cent) said that they thought all current accounts are similar, this is despite the fact that the difference between the best and worst credit interest rates is 5.9 per cent.
Abbey also found that 16 per cent of people think that it is impossible to move your overdraft to a new account. In fact, overdrafts of £5,000 or less can be matched, with some banks offering an interest-free period.
“Myths and misinformation are stopping people from joining the current account revolution,” said Steve Shore, head of banking at Abbey.
“The difference between the best and worst rates is significant, and customers can greatly benefit from switching to a better rate.”
