Advice if you’re thinking about switching banks

Following recent UK banking issues, Kevin Mountford, head of banking at MoneySupermarket.com offers the following advice to consumers thinking about switching banks: "The recent problems in the banking sector are prompting some consumers to vote with their feet and look to switch providers, with MoneySupermarket seeing a 25 per cent uplift in the number of searches to the current account channel. Whilst switching accounts can be a good thing, consumers need to make sure they are moving for the right reasons. If you are unhappy with your bank, then jumping ship may not necessarily be the answer, especially if the deal you are on is a good one. Instead try and make the most of the products you have by being savvier and not paying over the odds in fees and charges.

"Consumers should consider whether their current account, for example, suits their needs; or whether the initial tempting offers on the accounts have changed over time. Although consumers may not wish to switch current accounts on a regular basis, it is important to review your account from time to time to make sure it suits your financial situation; otherwise you may fail to get the best value. Ultimately, people need different things from their current account - some people are always in credit and will find that cash incentives are the best way to maximise returns, but others will need to consider various overdraft charging structures.

"Those thinking about ditching their bank account altogether after recent events should think again. Having a bank account is essential as you gain a number benefits. Many people will struggle to get paid if they don't have a bank account as most companies use bank transfers rather than cheque or cash in hand. For other products such as credit cards, mortgages or loans, moving your debt will most likely cost you money in some shape or form such as balance transfer fees, so customers should read the small print carefully, before making any decisions based solely on recent banking news.

"Keeping your money with a bank offers additional protection as long as you remain under the FSCS limit. The alternative of stashing your money under the mattress will not earn you interest so the value of your money falls in real terms due to inflation, and you miss out on earning any extra bang for your buck."