New research has shown that those who regularly switch their current accounts and other financial products will save money, compared with those who don’t.
The research, conducted by Santander, has shown that over 90% of current account holders are potentially losing money by not switching to products featuring better interest rates and account bonuses.
Gillian Almond, head of Santander Current Accounts’ points out, “Traditionally, people have kept their current accounts for a long time and many providers have become complacent because of this.”
“Having a better current account can make a significant financial difference to consumers so it’s important to understand that it’s worth shopping around.”
Only seven percent of all current account holders have switched current account in the past year, which is far lower than savvy motorists and home owners, who regularly shop around for the best deals.
Those shopping for motor insurance are well aware that their renewal quote is unlikely to represent the best value for money. Instead they search for new deals and incentives to take their business to other companies, and current account customers should be no different.
The study suggests that a whopping £2.2billion in interest is lost by UK bank account holders, due to not switching to accounts with better interest rates and benefits.
Some current accounts offer cash back as an incentive to join, with some offering as much as £100. Changing accounts on a yearly basis, claiming the cash back reward, and benefiting from introductory interest rates can leave current account holders substantially better off, than those who stick with the same account.