Banks must co-operate with switching
of other organisations proving profit can go hand-in-hand with ethical principles. Nationwide is a good all-rounder and while not explicitly describing itself as ethical, it ticks most boxes.’
She also recommends Triodos, which is set to launch its first UK current account shortly.
HOW TO SWITCH
THE easiest way to transfer a bank account is under the Current Account Switching Service. This promises to move existing direct debits and incoming payments in seven working days.
Under the service’s guarantee, customers who incur any charges as a result of the process, such as overdraft fees, will be refunded. Payments will be redirected from the old to the new account for 36 months and cheques will also be redirected.
Most high street banks have signed up to the service. Many even offer a golden hello to customers who use it. For example, M&S Bank offers up to £170 on an Marks & Spencer gift card, while First Direct pays £100 in cash.
CONSIDER OTHER BENEFITS
CUSTOMER service, in-credit interest and low overdraft fees should be part of any switching decision.
Some banks allow you to switch your overdraft as long as you meet their eligibility criteria.
Figures published last week by Bacs, which runs the switching service, show that customers can save an average £116 a year by moving accounts. Kevin Mountford at comparison website MoneySupermarket says: ‘If customers fail to take advantage of the easier switching experience, it plays right into the hands of the big banks, which should be doing more to retain our custom.’
Co-op customers who are concerned about the safety of savings should check all their money is protected under the Financial Services Compensation Scheme.
Up to £85,000 is covered if a bank goes bust. However, in the case of the Co-op this total includes any money held with Britannia and Smile, which are brands owned by the bank.
Charlotte Nelson of Moneyfacts says: ‘If you do move any money out of the bank, beware of any withdrawal penalties.
‘And if you want to move a cash Isa, do it by filling in a transfer form so you do not lose your taxfree shelter.’