Current account switchers prefer to stay put

10 February 2017
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The majority of people who switch their current account do so only once, new data shows.

Research by price comparison website Compare the Market found 62% of people have never switched their bank account, despite new rules making it easier to do so.

Even those who had switched in the past failed to move their money around often - 59% of people who changed their bank account once have never moved again.

 

Of those who do switch, 39% say better benefits and rewards were what tempted them to move. Less than a third (29%) say higher interest rates would lure them elsewhere while 28% are looking for better customer service.

Data published last month showed that 1,010,423 switches were completed during 2016, lower than the previous year.

Three-quarters of people say they haven’t switched because they are happy with their current provider. A further 9% say they feel the process is too complicated.

Jody Baker, head of money at Compare the Market, says: “Once you have changed your current account, it’s easy to fall into the trap of thinking you will remain on the best deal in the market.

“It seems that those who do switch their bank have a tendency to switch and then switch off, meaning they may be missing more competitive offers elsewhere. It is advisable to check regularly what other providers are offering, in terms of interest rates or benefits, so you can rest assured you remain on the best deal for you.”

But if you don’t want to consistently switch accounts to access the best deals, consider opening multiple current accounts and “ping ponging” your money between them to make the most of the high in-credit interest rates on offer instead. See How to play current account ping pong for more on this.   

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