Is it time to switch your current account?
Switching current account can be a very rewarding move for people looking to make their money work harder, and find a deal better suited to their everyday needs.
Some 196,964 switches took place between January and March 2022, according to the Current Account Switch Service (Cass) – a 41% increase compared with the same period in 2021.
Some banks are offering as much as £170 to tempt switchers – but it also pays to make sure the account will suit your needs.
“Choosing the right current account depends on someone’s spending habits, as there are different accounts with their own benefits and charges,” says Rachel Springall, a finance expert at Moneyfacts.co.uk.
“Consumers who are searching for a rewarding bank account may wish to choose one that offers cashback on spending, or on monthly bills – there are even accounts that pay a monthly reward.
“On the other hand, those who may dip into their overdraft would be better choosing an account with a competitive overdraft tariff, or even one with an interestfree buffer. Those who plan to make frequent trips abroad can find accounts that don’t charge for using debit cards in an ATM or store, so they can avoid transaction fees,” adds Rachel.
Some accounts charge a monthly fee in return for a package of benefits. It’s important to weigh up how useful these will be compared with the fee.
Among the different packaged options, Rachel says Nationwide Flexplus offers mobile, travel and vehicle breakdown cover for a
£13 monthly fee. The Halifax Ultimate
Reward Current
Account offers mobile, travel and vehicle breakdown cover and cashback among its benefits for £17pm.
Virgin Money’s Club M account has a £14.50 monthly fee for maintaining insurance benefits, while Santander’s 123 Current Account includes cashback on selected bills and other benefits for £4 per month.
It’s also worth bearing in mind when switching that Cass can take the hassle out of moving bank or building society accounts. Switches are completed in seven working days under the initiative, payments are automatically moved over to the new account, and a guarantee means customers are not left out of pocket if something goes wrong with the switch.
Rachel adds: “Switching current accounts is easy to do using the Current Account Switch Service, and some banks will pay an upfront free cash incentive.
“However, it’s the overall package of an account that should be weighed up, before someone commits to switching their current account.”